Will India classify Bitcoin as an asset class soon?
Even though India was still deliberating regulations for cryptocurrencies, some top officials from the industry believed that the country could be looking at classifying 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 leniency shown by the government regarding crypto, the RBI recently clarified that there was no change in its stance and that concerns still prevailed regarding cryptos. The RBI Governor, Shaktikanta Das had earlier 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 a response to its latest circular that directed the banks to stop flagging customers over crypto transactions, citing a 2018 circular that was later quashed by the Supreme Court. While many mistook this circular as the central bank warming up to crypto, the RBI cleared the air with the above statement.
Nevertheless, there have been discussions about the formation of a new committee with the finance ministry and crypto industry to oversee the regulations. It has been reported that an expert panel at the ministry was already studying the matter and the chances of a crypto bill making its way to the monsoon session of the Parliament was likely.
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.