India is reportedly working on finalizing the crypto regulations after years of wait and brainstorming. A report from Economic Times suggests that the Indian government would reportedly regulate cryptocurrencies as an asset class such as Gold and Bonds. While this might seem like great progress for a country that was planning to impose a blanket ban just last year. However, it is also important to note that India would prohibit the use of digital assets as a mode of payment.
Regulating crypto as an asset class could be the only middle ground for the Indian government right now as they fear its use in illegal activities. Thus, instead of imposing a complete ban, the government has decided to take a precautionary path to see its viability. The reports of regulations also come in just days after Indian Prime Minister Mr. Narendra Modi chaired a meeting on the issue. The newspaper also reported that the draft of the bill is in the final stages and might get introduced in the parliament for discussion in the coming 3-4 weeks time.
India Could Finally Have Crypto Regulations Soon
The Securities and Exchange Board of India (Sebi) could potentially become the chief crypto regulator in the country mostly because the reports suggest crypto will be regulated as an asset class. On the other hand, The Reserve Bank of India (RBI), the Indian Central Bank remains skeptical of digital assets and has raised concerns regarding the same from time to time.
Despite the uncertainty around crypto regulations in the country for so long, India crypto community has thrived and rose to new highs. India currently boasts of a $6 billion crypto ecosystem comprising several unicorns and internationally recognized crypto brands. Many crypto VC firms have splurged millions of dollars in the Indian ecosystem despite the unclarity. This indicates the huge potential that crypto market leaders see in India.