India may not ban crypto completely, allows holding as assets: Report

Citing sources familiar with the government’s thinking, the newspaper said that this approach would avoid enforcing a complete ban, although the government is keen to stop crypto companies, including exchanges and platforms that are actively recruiting new investors. trying to attract.

The crypto community has made several representations to the Indian authorities to classify it as an asset rather than a currency in order to gain acceptance and avoid sanctions.

India’s Prime Minister Narendra Modi last week chaired a meeting to discuss the future of cryptocurrencies, saying unregulated crypto markets could become avenues for money laundering and terror financing, sources said on Saturday. Huh.

A person aware of discussions at that meeting said the overall view within the government is that the steps taken should be proactive, “progressive and forward-looking” because cryptocurrencies represent an evolving technology, the newspaper reported.

Sources told the newspaper that the details of a bill are still being finalized and the cabinet may get the proposed legislation for consideration in the next two to three weeks.

The newspaper reported that the Securities and Exchange Board of India (SEBI) may be named as the regulator, although this has not been finalized.

The Reserve Bank of India has so far appeared very reluctant to accept cryptocurrencies, raising concerns over the potential risks to macroeconomic and financial stability and capital controls.

According to blockchain data platform Chainalysis, India’s digital currency market was worth $6.6 billion in May 2021, compared to $923 million in April 2020.

RBI Governor Shaktikanta Das at an event on Tuesday reiterated the central bank’s concerns, saying there is a need for in-depth discussion, and noting the lack of a well-informed debate in the public domain.

(Reporting by Swati Bhat; Editing by Simon Cameron-Moore)