The Indian government will amend the bill banning cryptocurrencies and consider regulating this class of assets. Bloomberg reports, citing an informed source.
The bill ‘On Cryptocurrencies and Regulation of Official Digital Currencies’ was tabled for consideration in the budget session of the Indian Parliament, but it was never introduced. A Bloomberg source says the government, in conjunction with regulators and other stakeholders, has decided to revisit key aspects of the document.
Discussions are reportedly centered on three questions:
- whether cryptocurrency trading should be banned in India;
- whether cryptocurrencies can be regulated rather than banned outright;
- which crypto-related activities should be allowed and which should be prohibited.
The bill’s provisions are being revised line by line. Parallel discussions are under way with regulators and technical experts.
Since April 2021, Indian companies are required to report digital-asset transactions, their volumes, and any advances and deposits from any person.
In May, reports indicated the government would consider forming a committee to study the possibility of regulating cryptocurrencies as digital assets, and various applications of blockchain.
In June, the Enforcement Directorate of the Indian Ministry of Finance said that one of the country’s largest bitcoin exchanges — WazirX, owned by Binance — is under investigation for suspected breaches of currency regulations.
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