Sources have told the New Indian Express that the government is likely to classify Bitcoin as an asset class in India. As such, the Securities and Exchange Board Of India (SEBI) will oversee cryptocurrency regulations. A Cryptocurrency Regulation Bill is likely to be tabled in the Parliament during the Monsoon Session.
Reports off late have indicated Indian government’s softening stand on the issue. The RBI recently issued a compliance note to banks, asking them not to stop crypto traders and exchanges. Before that, the government had amended law to ask companies and crypto exchanges to disclose crypto related transactions. There were also reports that the government may establish a new crypto-regulation panel.
Even the crypto industry has initiated processes to set up a formal board to create and implement a self-regulatory code of conduct for exchanges.
However, the RBI has reiterated that it still has major concerns about cryptocurrency.
Good time for foreign players to enter India?
The news comes at a time when global crypto-exchanges are planning to enter India. U.S. based Kraken, and Hong Kong based Bitfinex and KuCoin are actively scouting the market and potential entry points.
Despite being at a very nascent stage, India has around 15 million investors who hold over $1.37 billion in cryptocurrency.