Recently, a number of signs have pointed towards a nuanced approach to crypto assets in India. Other reports claim that Indian authorities are now finalising work on legislation that could pave the way for the regulation of crypto asset trading. However, it is thought that the Indian government will ban crypto’s use in payments and transactions.
The Indian government will allow citizens to hold crypto as assets, as reported by The Economic Times. The news firm cited undisclosed sources close to Prime Minister Narendra Modi. In addition to the new legislation, businesses such as crypto exchanges and platforms will be banned from actively recruiting new customers through any form of advertising.
A draft of the legislation will be submitted to the cabinet for consideration within the next couple of weeks. After hearing about the proposed plans, major crypto exchanges in India have decided to abstain from advertising their services. These exchanges included WazirX and Bitbns.
An undisclosed person, supposedly aware of the discussions that were held during a meeting chaired by Modi last Saturday, reportedly said that the cabinet believes that steps should be taken in a “progressive and forward-looking” manner- with regards to blockchain technology.
The Indian government’s restrictive stance on crypto has previously been associated with the conservative policies adopted by the Reserve Bank of India, the country’s central bank.
Meanwhile, the Indian parliament is getting the ball rolling in regards to regulating crypto assets. On November 15, the parliamentary finance committee met with representatives of major exchanges. Many people speculate that crypto legislation will be deliberated during the legislature’s winter session which will begin on November 29.
While the regulation of crypto in India remains largely undecided, many crypto holders are being tentative with their investments. Despite this, India’s crypto market has seen a 600% rise over the last year.
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