According to the reports, the largest democracy in the world, India is planning to regulate cryptos by the time of the next annual budget which will likely take place in February of next year. According to sources, rather than prohibiting cryptocurrencies like bitcoin, the government is likely to regulate crypto assets as commodities.
Cryptocurrency regulation in India could be enacted as soon as February next year
According to local news outlet Business Today, the Indian government plans to establish cryptocurrency regulation in February of next year.
On February 1st 2022, the new budget 2022-2023 is likely to be delivered which generally takes place in the last week of January.
Furthermore, according to the news site, the government is expected to regulate cryptocurrencies as an asset class, similar to how commodities are governed, with proper taxation on transactions and gains. The government allegedly stated in June that after bitcoin is recognized as an asset class, the Securities and Exchange Board of India (SEBI) will oversee laws for the sector.
According to the officials, Reserve Bank of India (RBI) and Finance Ministry are making necessary turnings on the regulatory framework for crypto industry. However, the central bank has stated that cryptocurrency continues to cause it severe concerns.
Currently, India does not control the cryptocurrency industry directly. The government is drafting a measure called “Banning of Cryptocurrency & Regulation of Official Digital Currency,” which would prohibit all cryptocurrencies, including bitcoin, except those issued by the government. An inter-ministerial group led by former Finance Secretary Subhash Chandra Garg authored the bill. It was released in July 2019.
Recent reports imply, however, that the administration may have abandoned the intention of outlawing cryptocurrency. The crypto bill was ready for Cabinet in July, according to the finance minister. In September, the head of India’s Parliamentary Standing Committee on Finance stated that cryptocurrency regulation will be different and distinctive in India.
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