Crypto regulation instead of prohibition in India until February 2022: Report

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The Indian government reports a regulatory framework for operation with cryptocurrencies until February next year. Instead of a complete ban, the authorities will discuss this time whether Bitcoin and the old coins should be accepted as an asset class.

India's U -turn

The second populated nation in the world is one of the fastest growing markets for cryptocurrencies. However, the Indian government (with its controversial approach in this matter) causes confusion about how locals can handle digital assets.

At the beginning of the year, the authorities one To impose a complete ban similar to that in China and even crime the possession and mining of cryptocurrencies.

The government began to weaken its attitude in the next few months, and the upcoming regulations could not be so strict. According to a current Test report , the legal framework for Bitcoin and the old coins will see the light of day until February 2022 to clarify the taxation of transactions and profits. Surprisingly, the authorities will even discuss the opportunity to accept cryptocurrencies as an asset class.

A spokesman for the Ministry of Finance said that the enforcement of certain laws is of crucial importance for the industry, since the popularity of digital assets in India attract bad actors that they could use for dubious activities. New rules could enable the authorities to keep an overview of such operations:

"What should not happen tomorrow is that if I start a personal digital currency, after good marketing you buy them and as soon as it has valued, because I am a private player! Everyone actually bought this currency by using other assets. The government has to deal with the regulation to avoid the above."

listen to the experts

If India decides to treat crypto as an asset class, the step could boost the country's economy. At least the Indian billionaire Nandan nilekani named a few months ago.

The entrepreneur agreed that digital assets are not suitable as a payment method, since their value in Fiat currency is quite volatile and some of them consume too much energy. Instead, he said that investors should consider them a gold set, for example:

"As you have part of your assets in gold or real estate, you can have part of your fortune in crypto. I think crypto plays a role as a stored value, but certainly not in the transactional sense."

Interest in cryptocurrencies has actually been raised in India recently as locals increases its investments in digital assets from $ 200 million last year to $ 40 billion.

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