Classify Crypto As An Asset. Says Govt.

According to a recent report, India may soon designate Bitcoin as an investment market, reversing its previous antagonistic position against cryptocurrencies.

The New Indian Express said that when Bitcoin is designated as an asset class, the Securities and Exchange of India (SEBI) would supervise laws for the cryptocurrency sector, citing unnamed industry sources. According to the article, India’s crypto business is in negotiations with the Ministry Of finance about drafting new legislation, and an expert team within the department is looking into it. According to a recent report, India may soon designate Bitcoin as an investment market, reversing its previous antagonistic position against cryptocurrencies.

The New Indian Express said that when Bitcoin is designated as an asset class, the Securities and Exchange of India (SEBI) would supervise laws for the cryptocurrency sector, citing unnamed industry sources. According to the article, India’s crypto business is in negotiations with the Ministry Of finance about drafting new legislation, and an expert team within the department is looking into it. Sumit Gupta, the co-founder & CEO of the bitcoin exchange CoinDCX, expressed optimism that proper crypto legislation will help India’s digital economy.

“When it pertains to the crypto world, India has so very much immense potential.” India becomes a crypto powerhouse and leads a technological revolution in India with the correct crypto rules,” Gupta wrote on Thursday. Nandan Nilekani, the co-founder, and chairman of the IT and consulting firm Infosys asked the Government of India to accept virtual currencies as an asset class on Monday. According to the Financial Times, cryptocurrencies are too unpredictable and energy-intensive to be used as a form of payment, but they might be promoted as an asset that can be “bought and traded, like a commodity.” After El Salvador became the first country in Central America to recognize Bitcoin as legal money, a fresh report claims that the Govt has relaxed its stance on cryptocurrencies and would soon classify Bitcoin as an asset class.

According to The New Indian Express, market authority Securities and Exchange Board of India (SEBI) would be in place to regulate the cryptocurrency industry following Bitcoin’s categorization as an asset class. According to industry insiders, India’s crypto business is now in talks with the finance ministry about creating new rules, and an expert panel at the ministry is looking into it. A Cryptocurrency Regulation Bill is anticipated to be submitted in Parliament, according to reports.

The Long Run

The state of cryptocurrency in India is as unpredictable as its market price. Despite the ongoing volatility, more than 7 million Indians have invested about $1 billion in the digital currency market. In the coming months and years, the number of Indians engaging in Cryptocurrencies such as bitcoin is projected to soar. Bitcoin may be accepted as a store of wealth in India, according to Nandan Nilekani, the non-executive chairman of Infosys. Because, as he mentioned, cryptocurrencies are not suitable for transactions in India, as the country has already superior options (such as UPI). According to the Financial Express, in March, Rajya Sabha member K.C. Ramamurthy asked if any evaluation had been done on how cryptocurrencies like Bitcoin damage the country’s regular currency. He also wanted to know which nations favor or allow the usage of digital currencies, as well as which countries reject it and which countries are in the middle.

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