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According to reports, Indian state officials are no longer interested in outlawing Bitcoin, and a crypto regulatory bill may be debated at the Monsoon Session of Parliament.
The tide may have finally turned for cryptocurrencies in India, with news indicating the government’s softening position on crypto.
The government’s antagonistic posture towards Bitcoin (BTC) looks to be turning towards more common-sense regulatory measures for cryptocurrencies, according to an article published on Thursday by The New Indian Express.
According to the publication’s sources, officials have abandoned prior intentions for a blanket Bitcoin ban in favour of designating cryptocurrencies as an alternative asset class.
The Securities and Exchange Board of India, in partnership with the finance ministry, would allegedly be entrusted with regulating crypto legislation in the nation.
According to these insiders, Parliament will also consider a complete crypto regulation law during the Monsoon Session, which begins in July. According to reports, a finance ministry-created expert council is researching procedures for crypto regulation, and its findings might be used in legislative debates next month.
Commenting on the emerging positive signals on the crypto regulatory front, Ketan Surana, a member of the Internet and Mobile Association of India said:
“We can definitely say that the new committee which is working on cryptocurrencies is very optimistic on cryptocurrency regulation and legislation.”
Indiatech.org, a technology lobbying group in India, petitioned the government in May to designate cryptocurrency as digital assets rather than currencies.
Meanwhile, the Reserve Bank of India remains a vocal crypto critic, recently announcing that its stance on cryptocurrency remains unchanged. The RBI, on the other hand, has distanced itself from accusations that it has required banks to limit services to cryptocurrency exchanges.
Indeed, in March 2020, India’s Supreme Court overturned a 2018 RBI order that barred banks from serving cryptocurrency exchanges. According to Cointelegraph, three major cryptocurrency exchanges — Kraken, Bitfinex, and KuCoin — are aiming to join the Indian market.