Saturday, February 4, 2023

India Likely To Issue Regulatory Framework For Cryptos In February 2022

Indian Government is planning to introduce its regulatory framework for cryptocurrency in February 2022, during the general Budget Session in the Parliament, according to a report. 

A local Indian news outlet, Business Today, recently published a report stating that despite banning cryptocurrencies in the country, the government might regulate them as commodities.

During an interview with the local news outlet, one of the officials at the Finance Ministry said, “A law for cryptocurrencies would most likely come around by the time of the next general Budget.”

The budget session usually beings in the last week of January, therefore, it is being expected that the Budget for 2022-23 would be presented in Parliament on February 01, 2022. 

As per Business Today, the Indian Government is planning to regulate cryptos as an asset class. The cryptos will be regulated the same way commodities are regulated in the country, with appropriate taxation on transactions and gains. 

A report published in June 2021, informed that the government is likely to hand over the responsibility of managing crypto regulation to the Securities and Exchange Board of India (SEBI). 

Even though the Reserve Bank of India (RBI) has some serious concerns regarding cryptocurrency, it is helping the Finance Ministry in making small adjustments in the regulatory framework for digital assets. 

The Indian Government did not regulate the crypto industry directly, in fact, it was considering a bill titled ‘Banning of Cryptocurrency & Regulation of Official Digital Currency’, to do so. The bill was first published in 2019, by an inter-ministerial committee, which was being headed by former Finance Secretary Subhash Chandra Garg.

According to that bill, all private cryptocurrencies like Bitcoin should be banned in the country.

But, the recent reports suggest the Indian Government dropped the idea of banning private cryptocurrencies. 

In July, the Finance Ministry announced that it has drafted the crypto bill and sent it to the cabinet for further approval. 

Later in September 2021, the Chairman of India’s Parliamentary Standing Committee on Finance claimed that crypto legislation in India will be distinct and unique.

Recently, the CEO of WazirX, Nischal Shetty, shared his views on the upcoming Indian crypto regulation, stating, “Great to hear that India plans to bring in a crypto regulation bill next year. Crypto has reached a stage where countries no longer talk about a ban. It’s now about How to regulate.”

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