Reports suggest that India could regulate cryptocurrencies very soon. It seems that the government is planning to draft a new bill to definite crypto and divide them into various uses. Now, if that’s the case, it will change the way crypto is perceived in India. The government indicated a possible crypto ban during the start of 2021, and now that is flipped 360 degrees. Let’s see how long does the Indian government take to draft and present this new bill in the parliament.
India’s take on cryptocurrencies
Before we start how India starts to regulate crypto, we should know why it is important. As of now, the laws on crypto are very convoluted. Suppose someone invests in them and makes a good profit; they won’t even know how to pay the taxes properly. On the other hand, if the government starts to regulate them and defines every law properly, people will have a clearer idea about them. This is why it is very important.
Now coming back to what the government plans to do is put crypto under the asset/commodity class. Yes, they are not making it a legal currency, but that’s cool. Ultimately we all know that Bitcoin is treated as a replacement for gold, and that is what the case is here. The government will also segregate cryptocurrencies depending on the technology used in them and their use cases. Reports also suggest that the government has no future plans to make crypto a legal tender.
A problem with all this is that the government might not allow every cryptocurrency project in India. That means they will go through every popular currency and decide if they plan to allow trade in the country.
Exchanges are happy
The Indian crypto exchnages are also happy regarding the decision of the government. This is because if they do regulate crypto, it will help boost the adoption in the country. People who still don’t trust crypto will now start to do so because the government is keeping an eye on the same. At the same time, the new laws will bring a lot of transparency and will be beneficial for big investors. A lot of CEO’s of major exchanges have tweeted out their thoughts on this positive move.
What are your thoughts on the fact that India could regulate cryptocurrencies? And do you think that this will change the entire perception of the industry in the country? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
Also Read: Bitcoin will become legal tender in El Salvador in 3 days.