This has been a historic week for Bitcoin as just after a decade of existence, it has now been declared the legal tender for a country. The move seems to have sparked a trend as regulators all across the globe are starting to advocate for the flagship crypto as well as the entire industry. Now, some industry sources in India are claiming that the nation could soon move to classify Bitcoin as an asset class.
Local media outlet The Indian Express cites industry sources claiming that the Indian government has softened its previously hostile stance against cryptocurrencies and is likely to soon classify Bitcoin as an asset class in India.
Per the report, the Securities and Exchange Board of India (SEBI) would oversee laws for the cryptocurrency sector following Bitcoin’s categorization as an asset class. The Indian crypto industry experts are also in discussions with the finance ministry about the creation of a new set of laws, industry sources add that an expert group at the ministry is looking into it.
A Cryptocurrency Regulation bill could also be tabled in the Parliament during the Monsoon session, they added.
“We can definitely say that the new committee which is working on cryptocurrencies is very optimistic on cryptocurrency regulation and legislation… A new draft proposal will soon be in the Cabinet, which will look into the overall scenario and take the best step forward. We are very hopeful that the government will embrace cryptocurrencies and blockchain technologies,” Ketan Surana, Director and chief financial officer, Coinsbit, and Member, Internet and Mobile Association of India.
Hope for Crypto Enthusiasts
The development comes just days after the Reserve Bank of India (RBI) urged banks in a circular to stop avoiding transactions involving cryptocurrencies, citing an earlier 2018 circular that was invalidated by the Supreme Court. However, RBI Governor Shakthikanta Das reiterated that the government had been informed of serious concerns concerning digital currencies.
Just days before, Nandan Nilekani, the founder of Indian tech giant Infosys, urged regulators to accept cryptocurrencies as an asset class, stating that it could help the Indian economy. He stated that cryptocurrency, like gold or real estate, may be used as an asset. However, he also noted that it cannot be employed in a transactional context.