After EI Salvador’s remarkable stand to adopt Bitcoin as a legal tender, things are appearing brighter back home in India for crypto-lovers.
Top sources monitoring the industry informed that the government has a change of mind from its previous hostile attitude towards digital currencies. It will most probably consider Bitcoin as an asset class in India soon.
The sources continued that the Security and Exchange Board of India (SEBI) will supervise regulations for the crypto sector after Bitcoin’s classification as an asset class.
An asset class is a group of financial instruments that have alike financial characteristics and behave likewise in the marketplace.
The crypto industry in India is continuously in discussion with the finance ministry in terms of the formation of a new set of regulations. Further, the industry sources point out that an expert panel at the ministry is examining the matter.
A crypto regulation bill is expected to be presented in Parliament during the monsoon session.
The development came after the Reserve Bank of India (RBI) issued a circular to the banks directing them to stop avoiding transactions including virtual tokens quoting its previous 2018 circular since it had been canceled by the honorable Supreme Court.
However, Shakthikanta Das, Governor of RBI reiterated that there were still major issues that have been communicated to the govt. on cryptocurrencies.
It is noted that due to the unstable nature of virtual currencies, they can’t be regularly used as a payment instrument.