According to reports, legislators in India want to classify Bitcoin as an “asset” regulated by the Securities and Exchange Board of India (SEBI), according to a report in the local newspaper New Indian Express this morning.
Regulation for Bitcoin in depth?
SEBI is expected to oversee Bitcoin activity in India and classify it as a proper, regulated “asset”. Bitcoin has so far existed in a legal gray area of the country and cannot be used as a currency on site. However, investor profits are treated as “capital taxes” and taxed accordingly.
The move comes shortly after the Central American country El Salvador legalized Bitcoin as “legal tender” alongside the US dollar – meaning the decade-old asset can be traded in any Goods and services were exchanged in a similar way to how dollars used to be.
According to the sources cited in the report, a so-called bill on the cryptocurrency regulation will likely be presented in parliament during the monsoon session.
Industry insiders support these sources: “We can definitely say that the new committee working on cryptocurrencies is very optimistic about the regulation and legislation of cryptocurrencies,” said Ketan Surana, director and chief financial officer at Coinsbit and member at Internet and Mobile Association of India.
He added: “There will shortly be a new draft proposal in the cabinet that will examine the overall scenario and take the best step forward. We are very confident that the government will adopt cryptocurrencies and blockchain technologies. “
The report comes weeks after Shakthikanta Das, governor of the Reserve Bank of India, the country’s central bank, said the government is reviewing regulations to integrate cryptocurrencies into the wider economy and taking steps to mitigate potential risks.
However, he said on a separate appearance that “major concerns” remained and that the government had been briefed on the negative aspects of cryptocurrencies.
Still, possible regulation would be a net gain for one of the most populous but economically challenged countries.
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