India is reportedly not planning to completely shut its doors on cryptocurrencies, rather the government wants to take a middle approach for the asset class.
Citing sources familiar with the matter, the Economic Times reported that the upcoming cryptocurrency regulation may see cryptos, including BTC, ETH, DOGE, etc., barred from being used to facilitate payment for goods and services.
However, people may choose to hold cryptocurrencies as assets like shares and bonds, among others, the source said.
The report further suggested that the country would ban crypto-related businesses and entities from making significant moves to lure new investors into purchasing cryptocurrencies.
“Active solicitation would not be permitted,” a government source told the Economic Times.
Per the source, the Securities and Exchange Board of India (Sebi) may be assigned to oversee the regulation of cryptocurrencies.
The government is working on cryptocurrency taxation, with the upcoming legislation expected to address it, the source said.
Notably, the bill is close to being finalized and there is a possibility that the proposed legislation will be forwarded to the cabinet in the next two to three weeks.
Calls to Regulate India’s Crypto Market
In recent times, there have been multiple indications that India may place a blanket ban on cryptocurrencies in general due to suggestions that the asset class is mostly used for illicit activities, especially terrorist financing, and money laundering.
These concerns have prompted the government to embark on a move to regulate the market, to curtail the abuse of cryptocurrencies.
Enthusiasts have weighed into the matter, requesting that cryptocurrencies be regulated as an asset and not a currency.
This way, it would put to rest the major concern that cryptos are being used in illicit dealings. There are strong indications that the government will not impose a complete ban on crypto as feared by crypto enthusiasts.
India’s Prime Minister Narendra Modi further stressed in a meeting held on Saturday that an unregulated industry could see cryptos being used for illegal activities.
One of the attendees of the meeting disclosed that the government’s view about cryptocurrencies is progressive and forward-looking considering the fact that the asset class is an evolving technology.
Also, a meeting held between crypto representatives and the parliamentary standing committee on Monday indicates that the government is in favor of regulation and not an outright ban.
Meanwhile, India’s crypto enthusiasts stated that it has made significant progress in its talks with the government, in a bid to help them have a better understanding of the asset.