India may drop Bitcoin ban agenda and favor asset classification

The government of India may finally favor cryptocurrencies as reports indicate a softer stance towards crypto.

India may drop Bitcoin ban agenda and favor asset classification

According to the report by The New Indian Express, the government’s hostile stance towards Bitcoin (BTC) appears to be shifting towards more common-sense regulatory policies for cryptocurrencies.

Authorities have dropped earlier plans for a blanket Bitcoin ban in favor of classifying cryptocurrencies as an alternative asset class.

The regulatory body for the securities and commodity market in the country, The Securities and Exchange Board of India (SEBI) will reportedly be tasked with overseeing crypto regulations in the country in collaboration with the finance ministry.

The sources also have claimed that Parliament will debate a comprehensive crypto regulatory bill during the Monsoon Session beginning in July. 

The Indian finance ministry has created an expert panel that is reportedly studying protocols for crypto regulation and its findings could form part of the parliamentary deliberations next month.

While commenting on the emerging positive signals on the crypto regulatory front, a member of the Internet and Mobile Association of India, Ketan Surana said:

“We can definitely say that the new committee which is working on cryptocurrencies is very optimistic on cryptocurrency regulation and legislation.”

Back in May, Indiatech.org, a technology lobby group in India suggested government to define cryptocurrencies as digital assets and not currencies.

The Reserve Bank of India (RBI), meanwhile, remains a staunch crypto critic by recently stating that its position on cryptocurrencies remains unchanged

However, the RBI has distanced itself from reports that it mandated banks to block services to crypto exchanges.