Change of heart? India is reportedly considering classifying Bitcoin as an asset class

After years of controversial history with the digital asset industry, India could change its mind again and move from banning cryptocurrencies to being classified as an asset class.

  • Citing “Top Sources That Follow the Industry,” The New Indian Express reported the latest on June 10th.
  • The newspaper said the government has decided to skip its plans to ban cryptocurrencies. Instead, it will “most likely” classify Bitcoin and the rest of the market as an asset class very soon.
  • If so, the digital assets division will function under the regulatory framework of the local regulator – the Securities and Exchange Board of India (SEBI).
  • The second most populous country in the world has shown a very controversial approach to the industry for years.
  • As early as 2018, the country’s central bank banned all organizations working with it from working with anyone from the crypto space.
  • The country’s Supreme Court overturned the decision in 2020. Nonetheless, RBI has often warned investors about the potential risks of investing in virtual assets.
  • In addition, some reports have claimed that the government is indeed considering a comprehensive ban on BTC, just like its northern neighbor – China.
  • However, another country could have played a more significant role in India’s reported change of heart – El Salvador. As it became known after the weekend, the small South American country recognized Bitcoin as legal tender within its borders.

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