India could try to classify Bitcoin as an asset class

This was a historic week for Bitcoin as it has now been declared legal tender for a country after a decade of existence. The move appears to have started a trend as regulators around the world begin to champion the flagship crypto as well as the industry as a whole. Now, some industry sources in India are claiming that the nation could soon classify Bitcoin as an asset class.

Local media company The Indian Express cited industry sources claiming that the Indian government has softened its previously hostile stance towards cryptocurrencies and that Bitcoin will likely soon be classified as an asset class in India.

According to the report, the Securities and Exchange Board of India (SEBI) would oversee laws for the cryptocurrency sector after Bitcoin was classified as an asset class. India’s crypto industry experts are also in talks with the Treasury Department to create a new legislative package, industry sources add that a group of experts from the ministry is investigating.

A bill on the cryptocurrency regulation could also be presented to parliament during the monsoons session, they added.

“We can definitely say that the new committee working on cryptocurrencies is very optimistic about regulation and legislation for cryptocurrencies … A new draft proposal will soon be in the cabinet, which will examine the overall scenario and take the best step forward . We are very confident that the government will adopt cryptocurrencies and blockchain technologies, ”said Ketan Surana, director and chief financial officer of Coinsbit and a member of the Internet and Mobile Association of India.

Hope for crypto enthusiasts

The development comes just days after the Reserve Bank of India (RBI) issued a circular asking banks to stop avoiding cryptocurrency transactions, citing an earlier 2018 circular that the Supreme Court invalidated became. However, RBI Governor Shakthikanta Das reiterated that the government had been informed of serious concerns about digital currencies.

Just days earlier, Nandan Nilekani, founder of Indian tech giant Infosys, urged regulators to accept cryptocurrencies as an asset class, stating that doing so could help the Indian economy. He explained that cryptocurrencies like gold or real estate can be used as an asset. However, he also noted that it cannot be used in a transactional context.

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