2 November 2024
Indian Crypto Regulation To Get Introduced By February 2022
A report issued by a local news outlet stated that the Indian government is reportedly planning to introduce Cryptocurrency regulation by the time of the next general Budget, which is by February 2022.
As per the reports, rather than banning Crypto-assets like bitcoin, the government is likely to regulate Crypto assets as commodities.
"Finance Ministry officials have told Business Today Television that law for cryptocurrencies would most likely come around by the time of the next general Budget."
The General budget 2022- 23 is expected to be presented on 1st February during the first half of the parliament’s Budget session. Besides, the Indian government is likely to regulate Cryptocurrencies as an asset class, similar to how commodities are regulated, with appropriate taxation on transactions and gains, voiced the news outlet.
Previously in June, the Indian government reportedly said that the Securities and Exchange Board of India (SEBI) would oversee regulations for the Cryptocurrency sector after Crypto is classified as an asset class.
Another official told the publication that the officials from the Finance Ministry and the Reserve Bank of India (RBI) are fine-tuning the regulatory framework for Crypto. Nevertheless, the central bank recently expressed that it still has “serious concerns” about Cryptocurrency.
Presently India is not regulating any Crypto sector directly. The government has been considering a bill titled “Banning of Cryptocurrency & Regulation of Official Digital Currency” drafted by an inter-ministerial committee headed by former Finance Secretary Subhash Chandra Garg, that seeks to ban all Cryptocurrencies, like Bitcoin, except state-issued ones.
Apart from this, the recent reports suggest that the government may have moved away from the idea of banning Cryptocurrencies. Earlier in July, the finance minister of India asserted that the Crypto bill was ready for Cabinet. While the chairman of India’s Parliamentary Standing Committee on Finance explained in September that Cryptocurrency legislation in India will be “distinct and unique.”
To which the CEO of Wazirx, Nischal Shetty, replied, “Great to hear that India plans to bring in a 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.”
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