Crypto Regulations Instead of a Ban in India by February 2022: Report

2021-10-28 18:2082336

Source: CryptoPotato

The Indian government will reportedly implement a regulatory framework for operating with cryptocurrencies by February next year. Instead of a complete ban, this time, the authorities will debate whether to accept bitcoin and the altcoins as an asset class.

India’s U-Turn

The world’s second most populated nation is one of the fastest-growing markets for cryptocurrencies. However, the Indian government (with its controversial approach towards the matter) causes confusion on how locals can operate with digital assets.

Earlier in the year, the authorities planned to impose a total ban similar to the one in China and even criminalize the ownership and mining of cryptocurrencies.

The government started softening its stance ин the next few months, and the upcoming regulations might not be so harsh. According to a recent report, the legal framework on bitcoin and the altcoins will see the light of day by February 2022 to clarify the taxation of transactions and gains. Surprisingly, the authorities will even discuss the option of accepting cryptocurrencies as an asset class.

A spokesman at the Finance Ministry explained that enforcing certain laws on the industry is vital because the popularity of the digital assets in India attracts bad actors who could employ them in dubious activities. New rules could enable the authorities to stay on top of such operations:

“What should not happen tomorrow is that if I start a personal digital currency, and after good marketing everybody buys it and once it has appreciated, I run away since I am a private player! Everybody has actually bought that currency by using other assets. The government needs to look at regulation in order to avoid the above.”

Listening to The Experts

If India decides to treat crypto as an asset class, the move could boost the country’s economy. At least, that is what the Indian billionaire Nandan Nilekani said a few months ago.

The entrepreneur agreed with many critics that digital assets are not suitable to be used as a payment method as their fiat currency value is quite volatile and some of them consume too much energy. He instead opined that investors should consider them as a gold substitute, for example:

“Just like you have some of your assets in gold or real estate, you can have some of your assets in crypto. I think there’s a role for crypto as a stored value but certainly not in a transactional sense.”

The interest in cryptocurrencies has indeed skyrocketed in India lately as locals increased their digital assets investments from $200 million last year to $40 billion this year.

Likes 0
Declaration: This article is published with the authorization. And it can't represent FTFTX's standpoint. Please note the source of article if it is reprinted:
All Comments(3)

Monster Rehab

Monster Rehab

Blockchain wealth




Perseverance is victory





No More

PoW Miners Rake in Profits Mining ETH Until the End, Ethash Networks Expect a Boost, JPMorgan Strategists Say ETC Could Benefit

1PoW Miners Rake in Profits Mining ETH Until the End, Ethash Networks Expect a Boost, JPMorgan Strategists Say ETC Could Benefit

In just over a month’s time, The Merge is likely to be implemented on the Ethereum blockchain and the network’s proof-of-work (PoW) miners will be forced to mine another coin. So far, it seems ethereum miners are sticking with the PoW Ethereum chain until the very end as profits have increased. While Ethereum will change the consensus ruleset, a great number of crypto community members are attempting to guess where the hashrate will go after The Merge transition. What do you think about The Merge and how miners will need to make a choice in 32 days when it comes to choosing an Ethash supporting blockchain? Let us know what you think about this subject in the comments section below. Disclaimer

2022-08-16 05:33 | Bitcoin.com1

FTFTX APP DownloadUse
iOS 9.0 and above
Android 4.3 and above