India Softens, Lifts Ban On Cryptocurrency Trading

India lifts crypto ban (Coinmarketcap)

JAKARTA – The Indian government had banned cryptocurrency trading in its country. But recently India reportedly revised the rules.

They plan to make cryptocurrency an asset class under the auspices of the Securities and Exchange Board of India (SEBI). Launching Bitcoin News, the Indian government will also introduce a crypto bill in parliament sometime in the future in the Monsoon season.

Previously, the Indian government would implement a bill to ban cryptocurrencies. However, it was revised again so that they plan to include crypto in the asset class.

Based on a New Indian Express report, key sources tracking the crypto industry stated that “the government has moved away from a hostile attitude towards virtual currencies and will most likely classify bitcoin as an asset class in India very soon.”

"India Securities and Exchange Council (SEBI) market regulator will oversee regulations in the cryptocurrency sector after including bitcoin as an asset class", the statement added.

Not only that, but India's financial regulator is also reportedly in the middle of formulating cryptocurrency regulations to be implemented domestically. The bill will be submitted to Parliament.

“Cryptocurrency regulation bills are likely to be submitted to Parliament during the Monsoon season”.

The monsoon season usually starts in July. In 2020, this was not held due to the coronavirus crisis. The government plans to start the session in 2021 as usual.

In addition, the Reserve Bank of India (RBI) as the country's central bank announced that the circular letter in April 2018 had been revoked. The circular prohibits financial institutions from serving crypto businesses and trading.

The RBI said the regulation did not apply by a Supreme Court ruling in March last year. However, the central bank emphasized that the RBI's stance has not changed and is still concerned about cryptocurrencies.

RBI Governor, Shakthikanta Das added that his party had discussed the matter with the Ministry of Finance.

The softening of the Indian government's stance on cryptocurrencies has received a positive response from crypto trading party Coinsbit and Indian Internet and Mobile Association (IAMAI) member Ketan Surana.

“We can definitely say that the new committee working on cryptocurrencies is very optimistic on cryptocurrency regulations and laws”, said Surana.

“A new Bill will be coming soon to the Cabinet, which will look at the overall scenario and take the best steps forward. We really hope the government can embrace cryptocurrency and blockchain technology”, he added.