Bitcoin has been the talk of the town over the past few months. With a market cap of over US$100 billion, it is now the most valuable cryptocurrency in the world. It is also among the most controversial assets. After the Reserve Bank of India (RBI) made a decision to classify Bitcoin among “securities”, it was bound to cause some controversy.
A controversial new draft of a bill proposed by the Indian government could soon classify bitcoin as a regulated “asset”, allowing Indian banks to clear transactions and make businesses accept the digital currency. The draft, named the “Bitcoin (Unlawful Activities) Bill, 2017” (BAUAB 2017), was previously rejected by the Indian Parliament in April 2017. Now, the Indian government is considering amending the bill to bring it back on the table.
India’s central bank, Reserve Bank of India, is reportedly planning to launch a new mechanism to regulate virtual currency. This comes after the government took a major step in this direction when it allowed bitcoin exchanges to begin trading in cryptocurrencies in the country.Indian lawmakers reportedly want bitcoin to be classified as a regulated asset by the Securities and Exchange Board of India (SEBI), local newspaper New Indian Express reported this morning.
Is bitcoin regulation on the way?
SEBI should oversee bitcoin in India and classify it as a regulated asset. Until now, bitcoin was in a legal grey area in the country and could not be used as a local currency. However, the investor’s gain is treated as a capital gain and taxed accordingly. The move comes shortly after the Central American country of El Salvador legalized bitcoin as a legal currency on par with the U.S. dollar, meaning the decades-old asset can be traded for goods and services, just as the dollar was before. According to sources quoted in the report, the crypto currency regulation bill is likely to be tabled in parliament during the monsoon session. Industry insiders support these sources: We can definitely say that the new committee dealing with cryptocurrencies is very optimistic about the regulation and legislation of cryptocurrencies, said Ketan Surana, director and CFO of cryptocurrency exchange Coinsbit and member of the Internet and Mobile Association of India. He added: A new draft will soon be submitted to the Cabinet, which will evaluate the overall scenario and take the best possible action. We really hope that the government will embrace cryptocurrencies and blockchain technology.
The report comes weeks after Shaktikanta Das, governor of the Reserve Bank of India, the country’s central bank, said the government was studying the rules for integrating cryptocurrencies into the broader economy and taking steps to mitigate potential risks. However, in a separate statement, he said that serious concerns remain and that the government is aware of the negative aspects of cryptocurrencies. Nevertheless, any regulation would be a positive development for one of the world’s most populous but economically disadvantaged countries.
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The Reserve Bank of India (RBI), the country’s central bank, has been working on a draft regulation to recognize cryptocurrencies as a legitimate financial instrument. Some cryptocurrency enthusiasts believe the move could lead to more adoption in the country.. Read more about is pi network legal in india and let us know what you think.
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