The Indian government plans to introduce cryptocurrency control during the next general budget, which will take place in February next year. Instead of banning cryptocurrencies such as Bitcoin, the government could regulate crypto assets as commodities, according to the report.
Indian crypto law could come in early February
The Indian government plans to introduce cryptocurrency regulation in February next year, local news outlet Business Today reported, detailing:
Finance ministry officials told Business Today television that a law for cryptocurrency would probably come during the next general budget.
Budget 2022-23 is expected to be presented in the first half of the budget session of Parliament, which usually begins in the last week of January, on February 1.
Moreover, the government is likely to regulate cryptocurrencies as an asset class, the way commodities are regulated, with the imposition of appropriate taxes on transactions and profits, the news outlet said. In June, the government said the Securities and Exchange Board of India (SEBI) would oversee regulation in the cryptocurrency sector after classifying crypto as an asset class.
Another official told the publication that officials from the finance ministry and the Reserve Bank of India (RBI) were working on a regulatory framework for crypto. However, the central bank recently said it still has “serious concerns” about cryptocurrency.
India does not currently directly control the crypto sector. The government is considering a bill titled “Banning Cryptocurrency and Regulating Official Digital Currencies” that seeks to ban all cryptocurrencies such as Bitcoin unless issued by the state. An inter-ministerial committee headed by former finance secretary Subhash Chandra Garg drafted the bill. It was published in July 2019.
However, recent reports suggest that the government may move away from the idea of banning cryptocurrency. In July, the finance minister said the crypto bill was ready for cabinet. The chairman of India’s parliamentary standing committee on finance explained in September that the cryptocurrency law in India would be “unique and unique.”
Nischal Sethi, CEO of cryptocurrency exchange Wazirix, commented on the upcoming Indian crypto regulations:
It is good to hear that India is planning to introduce a crypto regulation bill next year. Crypto has reached a point where countries no longer talk about sanctions. It is now ‘how to control’.
Do you think India will introduce crypto regulation in February next year? Let us know in the comments section below.
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