India may no longer ban cryptocurrencies but instead classify Bitcoin as an asset class.
Bitcoin could be an asset class in India
The Indian government was expected to ban cryptocurrency trading activities in the country. However, industry sources have now revealed that the government could shelve that plan and instead classify Bitcoin as an asset class.
Two sources close to the industry told the New Indian Express that the government is moving away from its current position on cryptocurrencies. Instead, they will look to classify Bitcoin as an asset class. Per the sources, the Securities and Exchange Board of India (SEBI) will be tasked with regulating the Indian crypto market once Bitcoin has been classified as an asset class.
The sources added that the Indian cryptocurrency industry is in talks with the finance ministry on how best to regulate the market. An expert panel at the ministry is tasked with studying the matter, the sources added. Once everything is ironed out, the government is expected to submit a Cryptocurrency Regulation bill to the parliament during the Monsoon session.
El Salvador’s Bitcoin adoption could spur others
This latest development comes a few hours after El Salvador officially adopted Bitcoin as a legal tender. El Salvador’s adoption could spur other countries into action, with several Latin American politicians already backing Bitcoin.
The news also came a few days after the Reserve Bank of India Governor Shakthikanta Das warned that they still have concerns over cryptocurrencies. If India classifies Bitcoin as a legal tender, the Indian cryptocurrency market could expect massive growth over the coming months and years.