Recent developments indicate that the government wants to regulate the industry rather than outlaw it, and industry analysts are optimistic.
India, which has long been suspicious of cryptocurrencies, has yet to decide whether to outright prohibit them or to regulate their trade.
The shroud of regulatory ambiguity may be ready to dissipate. According to authorities from the Finance Ministry, India’s crypto legislation could be introduced during the next budget debate in February 2022.
The Indian crypto community has been kept in suspense while the government deliberates over whether or not to accept cryptocurrency.
When an inter-ministerial committee set up in 2017 produced draught legislation, the danger of a comprehensive ban first surfaced in 2019.
The committee suggested that cryptocurrencies be banned in the country and that violators face jail time.
People were already on edge when the Reserve Bank of India, the country’s central bank, issued a de facto ban on cryptocurrencies in 2018.
THE #INDIAWANTSCRYPTO CAMPAIGN
From tthe day 1, CEO of India’s Biggest crypto exchange WazirX Nischal Shetty, drives the moment with hashtag “India wants crypto” and since then stood by the Indian crypto-community. He posted a Tweet regarding the news showing his happiness and excitement.
In early 2020, however, the Supreme Court knocked down the RBI circular, providing a light of optimism. However, the lack of regulation continued to worry investors, and rumours of a ban persisted.
A new inter-ministerial committee was formed earlier this year, with recommendations that were similar to those of the previous one.
However, Finance Minister Nirmala Sitharaman has stated on several occasions that the government will not entirely ban cryptocurrency.
Sitharaman stated in August that a crypto bill has been prepared and is awaiting approval from the union cabinet before being introduced for debate in the parliament.
INTRODUCING TAXATION IN CRYPTOCURRENCY
According to the most recent report, the government is considering classifying cryptocurrency as a commodity in the asset class and has established a panel to investigate how cryptocurrency income might be taxed.
These moves suggest that the government wants to regulate the industry rather than outlaw it, and industry analysts remain optimistic.
Crypto adoption has also been prospering at the grassroots level in the country, with people from small towns and cities, particularly women, becoming more interested in cryptocurrencies.
According to a recent research estimate, India’s crypto industry has grown by 39% from US$53.1 million in FY2020 to US$74.2 million in FY2021.
According to the report, the market would rise by more than 200 percent by 2030, reaching US$241 million.
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