Lagatar24 Desk
New Delhi, Nov.17: The government is unlikely to ban cryptocurrencies outright, preferring instead to take a cautious approach. They may not be accepted as a form of payment or settlement, but they could be held as an asset similar to stocks, gold, or bonds, the Economic Times reported on Wednesday.
Active solicitation by corporations, including exchanges and platforms, would be prohibited, according to persons familiar with the matter.
To win acceptability and avoid a prohibition, the crypto community has made repeated statements to Indian authorities, requesting that it be classed as an asset rather than a currency.
According to reports, Prime Minister Narendra Modi held a meeting last week to debate the future of cryptocurrencies, amid concerns that unregulated crypto marketplaces could be used for money laundering and terror financing.
According to the publication, a source familiar with the discussions at the conference stated that the government’s overarching stance is that efforts taken should be proactive, “progressive, and forward-looking” because cryptocurrencies are a developing technology.
The contents of a law are still being finalised, according to the publication, and the cabinet could receive the proposed legislation in the next two to three weeks for consideration.
The Securities and Exchange Board of India (SEBI) may be named as the regulator, though nothing has been decided yet, according to the publication.
The Reserve Bank of India (RBI) has been hesitant to embrace cryptocurrencies so far, citing worries about macroeconomic and financial stability, as well as capital controls.
According to blockchain analytics company Chainalysis, India’s digital currency industry was worth $6.6 billion in May 2021, up from $923 million in April 2020.
At an event on Tuesday, RBI Governor Shaktikanta Das underlined the central bank’s worries, stating that more discussion was needed and that there was a dearth of well-informed public discourse.
