Instead of A Ban – India Is Likely To Introduce A Crypto Law In February
According to officials from India’s Finance Ministry any potential law on cryptocurrencies would likely come around the time the government submits the Union Budget of India in February.
Instead of banning cryptocurrency trading like China, India is interested in encouraging crypto-related regulations and is already in process of formulating a law that will help regulate digital assets.
According to a report, officials with the country’s Finance Ministry said the potential legal framework would treat cryptocurrencies closer to commodities than currencies. If this legislation comes to fruition, it would represent a different approach than an outright ban on digital assets in the country, which some Indian lawmakers have reportedly been considering.
India’s new crypto framework might be introduced along with the nation’s general budget February 1, to take effect before the next fiscal year. Officials at the Reserve Bank of India (RBI) have stated that the legal infrastructure of the law is already in its last stages. The watchdog is also in the process of fine-tuning the clauses involved to avoid any pitfalls.
Indian Finance ministry officials have also stated that the regulatory framework seeks an independent law that promotes cryptocurrency trading like any other investment, and is also making sure that the framework includes all necessary elements that would ensure safeguarding investors’ interest at all costs.
Labeling crypto as an “asset” under Indian law would likely have tax implications for retail investors and exchanges in the country. The Tax Department of India was reportedly looking at taxing crypto earnings through trades and exchanges, but no decision has seemingly been reached from anyone in government at the time of publication.
With a population of roughly 1.4 billion, India choosing to establish a concrete legal framework for cryptocurrencies would likely make significant ripples throughout the space. The government has largely not taken a firm position on regulating digital currency since overturning a blanket ban from the RBI in March.
Since that time, multiple reports have circulated that cite sources within the government suggesting the country’s parliament is backing down from creating a new law banning crypto trading in India, and also looking at alternative solutions to regulate digital assets.
The CEO of leading Indian cryptocurrency exchange WazirX, Nischal Shetty expressed his support saying that crypto has now finally reached a stage where India is now focusing on its regulating instead of banning it right away.
Great to hear that India plans to bring in crypto regulation bill next year
