Despite banning cryptocurrency in India, the government is likely to take a distinct approach.
Indian Government is planning to restrict the usage of cryptocurrency as a mode of payment, but to allow them to be held as an asset like gold, according to a report.
Presently, the government is working on its legal framework to regulate the trading of crypto assets and ban the use of cryptocurrency for payment and transactions.
“Active solicitation would not be permitted… Details of the bill are being finalized,” a government source said.
It has been further stated that in the coming two-three weeks the legislative framework might be forwarded to the cabinet for the further process.
The reports also suggest that the Securities and Exchange Board of India (SEBI) could be appointed as the chief crypto regulator in the country. As per the source, “Discussions on regulation are going on.”
However, the Reserve Bank of India (RBI), is still skeptical regarding digital assets. For quite a long time, the Central Bank of India has been raising its concern over the matter.
It was reported earlier that the government might impose the crypto tax and in the upcoming bill, it might address the matter.
There are chances that in the upcoming winter session of the Parliament, the Indian Government present the bill.
A few days ago, it was reported that the government is not planning to impose an absolute ban on cryptocurrency, instead, might take a middle path on it.
On November 13, the Indian Prime Minister Narendra Modi chaired a meeting and stated that cryptocurrency is an evolving technology, therefore, it is important to take a proactive, progressive and forward-looking decisions regarding it.
Following that meeting, the Parliamentary Standing Committee on Finance held a discussion with the top stakeholders of the crypto industry on November 15. During the discussion, it appeared that the committee is also in favor of regulating crypto and not imposing a ban on it
However, RBI Governor Shaktikanta Das has different views regarding cryptocurrency. Yesterday, while addressing an event organized by the State Bank of India, Mumbai, Das stated that cryptocurrency needs a deeper discussion. RBI has raised many concerns from its side which need a well-informed debate to get resolved.
Although, India has an uncertain regulatory environment regarding cryptocurrency, still the industry has experienced a huge surge in the number of individuals joining the community.