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India will regulate cryptocurrency, not outright ban it, according to Cabinet documents
Indian crypto investors will reportedly be given a deadline to declare their crypto holdings and will then be required to use SEBI-regulated crypto exchanges.
According to local media reports, the Indian government will not seek to outright ban cryptocurrency but will instead regulate the sector.
On Nov. 23, Cointelegraph reported that the Indian government was considering a bill that would create an official digital currency while also prohibiting the use of "private" cryptocurrencies.
The news sparked panic selling on local crypto exchange WazirX the following day, and the bill's ambiguous language and lack of clarification from the government have since divided many observers regarding the future of crypto in India.
However, on Dec. 2, Indian news outlet NDTV reported that it had obtained details of a cabinet note circulating within the government regarding the proposed cryptocurrency bill.
According to NDTV reporter Sunil Prabhu, the note suggested that cryptocurrencies be regulated as crypto assets, with the Securities and Exchange Board of India (SEBI) overseeing the regulation of local crypto exchanges.
According to Prabhu, investors will be required to declare their crypto holdings and transfer them to SEBI-regulated exchanges, implying that private wallets may be prohibited. He added that the move is part of the government's effort to combat money laundering and terrorism financing.
Prabhu also stated that the government will suspend its plans to establish a central bank digital currency (CBDC) with the Reserve Bank of India (RBI) in order to focus on the crypto sector. It will not permit the recognition of any crypto assets as currencies or legal tender, implying that it wishes to establish a clear distinction between the two:
Cryptocurrency will not be accepted as legal tender. That is an unequivocal no. That, I believe, is what the prime minister made crystal clear during his deliberations at that meeting in order to prevent that from happening.
"I believe they will develop it [CBDC] as a stand-alone virtual currency for the RBI at a later stage, so you can definitely anticipate a virtual currency in the near future," he added.
NDTV's reports have been welcomed by some Indian cryptocurrency investors. Redditor "ultron290196" expressed relief in the r/cryptocurrency subreddit about the possibility of no longer facing an outright ban.
"It appears as though our Indian crypto movement is gaining traction with the government, with the government finally deciding to regulate Cryptocurrency as Crypto "Assets" rather than legal tender. Overall, it's a relief for us Indians. They stated, "I'd rather pay a tax than become an outcast."
Not everyone was pleased with the details, as "No-Incident-8718" stated, "here's the catch. There will be no use of hard wallets; only exchange wallets will be used. Additionally, use only Indian exchanges."
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By Crypto PiratesIndian crypto investors will reportedly be given a deadline to declare their crypto holdings and will then be required to use SEBI-regulated crypto exchanges.
According to local media reports, the Indian government will not seek to outright ban cryptocurrency but will instead regulate the sector.
On Nov. 23, Cointelegraph reported that the Indian government was considering a bill that would create an official digital currency while also prohibiting the use of "private" cryptocurrencies.
The news sparked panic selling on local crypto exchange WazirX the following day, and the bill's ambiguous language and lack of clarification from the government have since divided many observers regarding the future of crypto in India.
However, on Dec. 2, Indian news outlet NDTV reported that it had obtained details of a cabinet note circulating within the government regarding the proposed cryptocurrency bill.
According to NDTV reporter Sunil Prabhu, the note suggested that cryptocurrencies be regulated as crypto assets, with the Securities and Exchange Board of India (SEBI) overseeing the regulation of local crypto exchanges.
According to Prabhu, investors will be required to declare their crypto holdings and transfer them to SEBI-regulated exchanges, implying that private wallets may be prohibited. He added that the move is part of the government's effort to combat money laundering and terrorism financing.
Prabhu also stated that the government will suspend its plans to establish a central bank digital currency (CBDC) with the Reserve Bank of India (RBI) in order to focus on the crypto sector. It will not permit the recognition of any crypto assets as currencies or legal tender, implying that it wishes to establish a clear distinction between the two:
Cryptocurrency will not be accepted as legal tender. That is an unequivocal no. That, I believe, is what the prime minister made crystal clear during his deliberations at that meeting in order to prevent that from happening.
"I believe they will develop it [CBDC] as a stand-alone virtual currency for the RBI at a later stage, so you can definitely anticipate a virtual currency in the near future," he added.
NDTV's reports have been welcomed by some Indian cryptocurrency investors. Redditor "ultron290196" expressed relief in the r/cryptocurrency subreddit about the possibility of no longer facing an outright ban.
"It appears as though our Indian crypto movement is gaining traction with the government, with the government finally deciding to regulate Cryptocurrency as Crypto "Assets" rather than legal tender. Overall, it's a relief for us Indians. They stated, "I'd rather pay a tax than become an outcast."
Not everyone was pleased with the details, as "No-Incident-8718" stated, "here's the catch. There will be no use of hard wallets; only exchange wallets will be used. Additionally, use only Indian exchanges."
Support us!