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November 29, 2022
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India may soon classify Bitcoin as a regulated ‘asset’

India may soon classify Bitcoin as a regulated ‘asset’, the change coming in the wake of the legalization of the world’s largest cryptocurrency in El Salvador.

Indian lawmakers are looking to classify Bitcoin as an ‘asset’ regulated by the Securities and Exchange Board of India (SEBI), according to a report by the local newspaper. New Indian Express this morning.

Bitcoin entry regulation?

SEBI must oversee Bitcoin activity in India and classify it as an appropriate regulated ‘asset’. Bitcoin, until now, existed in a legal gray area in the country and cannot be used as local currency. However, investors’ profits are treated as ‘capital taxes’ and are taxed accordingly.

The change comes shortly after the Central American country El Salvador legalized Bitcoin as a ‘legal currency’ along with the US dollar – meaning that a decade’s asset can be exchanged for any goods and services similar to how the dollars were exchanged. previously.

According to sources cited in the report, a bill called the ‘Cryptocurrency Regulation’ is likely to be introduced in Parliament during the Monsoon session.

Industry members support these sources: “We can definitely say that the new committee that is working on cryptocurrencies is very optimistic about the regulation and legislation of cryptocurrencies.”, said Ketan Surana, director and chief financial officer of crypto exchange Coinsbit and member of the Internet and Mobile Association of India.

He added:

“A new draft proposal will soon be at the Council of Ministers, which will examine the overall picture and take the best step forward. We are very hopeful that the government will adopt cryptocurrency and blockchain technologies. ”

Main concerns

The report comes weeks after Shakthikanta Das, governor of the Reserve Bank of India, the country’s central bank, said the government was exploring regulations to integrate cryptocurrencies into the broader economy and taking steps to mitigate potential risks.

He, however, said in a separate apparition that “big concerns” remain and that the government was informed of the negative aspects of cryptocurrencies.

Still, possible regulation would be a net positive result for what is one of the most populous countries in the world, but economically challenged.

Source: CryptoSlate

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