India could bar transactions in crypto, permit holding as assets – paper

- Advertisement -


MUMBAI, Nov 17 (Businesshala) – India is likely to ban the use of cryptocurrencies for transactions or payments, but allow them to be held in the form of assets such as gold, shares or bonds, The Economic Times reported on Wednesday. Told.

- Advertisement -

Citing sources familiar with the government’s thinking, the newspaper said that this approach would avoid enforcing a complete ban, although the government is keen to stop crypto companies, including exchanges and platforms that are actively recruiting new investors. trying to attract.

- Advertisement -

The crypto community has made several representations to the Indian authorities to be classified as an asset rather than a currency in order to gain acceptance and avoid sanctions.

India’s Prime Minister Narendra Modi last week chaired a meeting to discuss the future of cryptocurrencies, saying unregulated crypto markets could become avenues for money laundering and terror financing, sources said on Saturday. Huh.

- Advertisement -

A person aware of discussions at that meeting said the overall view within the government is that the steps taken should be proactive, “progressive and forward-looking” because cryptocurrencies represent an evolving technology, the newspaper reported.

Sources told the paper that the details of a bill are still being finalized and the cabinet may get the proposed legislation for consideration in the next two to three weeks.

The newspaper reported that the Securities and Exchange Board of India (SEBI) may be named as the regulator, although this has not been finalized.

The Reserve Bank of India has so far appeared very reluctant to accept cryptocurrencies, raising concerns over the potential risks to macroeconomic and financial stability and capital controls.

According to blockchain data platform Chainalysis, India’s digital currency market was worth $6.6 billion in May 2021, compared to $923 million in April 2020.

RBI Governor Shaktikanta Das at an event on Tuesday reiterated the central bank’s concerns, saying there is a need for in-depth discussion, and noting the lack of a well-informed debate in the public domain. (Reporting by Swati Bhat; Editing by Simon Cameron-Moore)

,

- Advertisement -

Stay on top - Get the daily news in your inbox

DMCA / Correction Notice

Recent Articles

Related Stories

Stay on top - Get the daily news in your inbox