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Even though India was still debating cryptocurrency legislation, several industry insiders speculated that the nation would consider recognising Bitcoin as an asset class.
Sources linked with the industry expressed that the government has moved away from its aggressive stance towards virtual currencies and was like to classify Bitcoin as an asset class in India soon. Meanwhile, the Securities and Exchange Board of India [SEBI] could be the regulator for crypto.
Despite the government’s forbearance towards crypto, the RBI recently reaffirmed that its attitude had not changed and that worries about cryptos remained. Shaktikanta Das, Governor of the Reserve Bank of India, had stated:
“There is no change in RBI’s position (regarding cryptocurrencies). And, with regards to RBI’s position, we have major concerns about cryptocurrencies, which we have conveyed to the government. And, with regard to investors, it is for each investor to do his own due diligence and take a very careful and prudent call.”
This was in reaction to its most recent circular, which instructed banks to stop alerting consumers for cryptocurrency transactions, citing a 2018 circular that was later overturned by the Supreme Court. While many misinterpreted this circular as the central bank warming up to cryptocurrency, the RBI clarified the situation with the remark above.
Nonetheless, there have been conversations of forming a new committee to supervise the legislation in collaboration with the finance ministry and the crypto business. According to reports, an expert team at the ministry was already researching the issue, and a crypto law was expected to make its way to the Parliament’s monsoon session.
Ketan Surana, Director and chief financial officer, Coinsbit, and Member, 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… A new draft proposal will soon be in the Cabinet, which will look into the overall scenario and take the best step forward. We are very hopeful that the government will embrace cryptocurrencies and blockchain technologies.”
At press time, BTC was trading at the $37,902 level.