According to reports, the Indian government intends to regulate cryptocurrencies by the time of the next general budget, which will take place in February next year. Rather than prohibiting cryptocurrencies such as bitcoin, the government is expected to regulate them like commodities, according to sources.
The Indian government intends to regulate cryptocurrencies in February of next year, according to local news site Business Today. According to Finance Ministry officials speaking to Business Today Television, cryptocurrency legislation is most likely to be enacted by the time of the next general budget.
Budget 2022-23 is likely to be delivered on Feb. 1 during the first part of parliament’s Budget session, which typically starts in late January.
Additionally, the government is expected to regulate cryptocurrencies as an asset class in the same way that commodities are controlled, with proper taxes on transactions and profits, the news site said. In June, the government allegedly announced that the Securities and Exchange Board of India (SEBI) will manage cryptocurrency rules after the asset class’s classification.
According to another insider, authorities from the Finance Ministry and the Reserve Bank of India (RBI) are now fine-tuning the regulatory framework for cryptocurrency. The central bank, meanwhile, has said that it continues to have “strong concerns” about bitcoin.
India does not control the cryptocurrency business directly at the moment. The government has been proposing a measure titled “Banning of Cryptocurrency and Regulation of Official Digital Currency” that would prohibit the use of all cryptocurrencies, including bitcoin, save those issued by governments. An inter-ministerial group headed by former Finance Secretary Subhash Chandra Garg authored the bill. It was released in July of this year.
Recent reports, however, indicate that the administration may be reconsidering the concept of banning cryptocurrency. The finance minister said in July that the crypto law was ready for Cabinet consideration. In September, the chairman of India’s Parliamentary Standing Committee on Finance stated that the country’s cryptocurrency legislation will be “unique and distinct.”
Nischal Shetty, the CEO of cryptocurrency exchange Wazirx, remarked on the anticipated Indian cryptocurrency regulation: It’s fantastic to see that India intends to introduce a crypto regulatory law next year. Cryptocurrency has advanced to the point where countries are no longer discussing a ban. It is now a matter of determining ‘How to regulate.’
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