Indian Crypto Regulation Is Scheduled for February
According to reports, the Indian government intends to implement cryptocurrency regulation by the time of the next general budget, which is scheduled for February of next year. Instead of outright prohibiting cryptocurrencies such as bitcoin, the government is expected to regulate crypto assets as commodities, according to reports.
According to local news outlet Business Today, the Indian government intends to implement cryptocurrency regulation in February of next year.
Finance Ministry officials have told Business Today Television that a law for cryptocurrencies would most likely come around by the time of the next general Budget.
The Budget 2022-23 is expected to be presented on February 1 during the first half of the parliament’s Budget session, which typically starts in the last week of January.
Furthermore, the government is likely to regulate cryptocurrencies as an asset class in the same way that commodities are, with appropriate taxation on transactions and gains, according to the news outlet. In June, the government reportedly stated that the Securities and Exchange Board of India (SEBI) will oversee cryptocurrency regulations once cryptocurrency is classified as an asset class.
According to another official, officials from the Finance Ministry and the Reserve Bank of India (RBI) are fine-tuning the regulatory framework for cryptocurrency. The central bank, however, recently stated that it still has “serious concerns” about cryptocurrency.
Currently, India does not directly regulate the crypto sector. The government is considering a bill titled “Banning of Cryptocurrency & Regulation of Official Digital Currency,” which seeks to prohibit all cryptocurrencies, including bitcoin, except those issued by the government. An inter-ministerial committee led by former Finance Secretary Subhash Chandra Garg drafted the bill. It was released in July of 2019.
Nischal Shetty, the CEO of cryptocurrency exchange Wazirx, commented on the upcoming Indian crypto regulation:
Great to hear that India plans to bring in crypto regulation bill next year. Crypto has reached a stage where countries no longer talk about a ban. It’s now about ‘How to regulate.’