Media: India to regulate cryptocurrencies rather than ban them

Indians will be required to disclose information about their digital assets and transfer them to SEBI-regulated Bitcoin exchanges. Details are contained in the memo accompanying the government’s cryptocurrency bill under consideration, NDTV reports.

Investors will be given a window to comply with the requirements.

Non-custodial wallets could be banned, according to media reports. The move would be the result of efforts to combat money laundering and terrorist financing.

Information about ban on most private cryptocurrencies, which triggered a short-term panic on local crypto platforms, did not materialise.

According to the report, the document proposes treating cryptocurrencies as assets and not as legal tender, with SEBI empowered to supervise local Bitcoin exchanges.

The government will pause work with the Reserve Bank of India (RBI) on developing a CBDC and will focus on regulating the cryptocurrency industry.

“This is a relief for us Indians. I would rather pay some tax than become an outcast.”, —responded a Reddit user under the handle ultron290196.

Other commentators were upset about a possible ban on non-custodial wallets.

“We will lose the entire ecosystem of dapps. […] Isn’t the main objective of Bitcoin to send money anywhere over the Internet?”, — said user razivict.

If India bans private wallet then we will loose out the entire dApps ecosystem.

Also, what’s the point about crypto if assets will be only limited within India.

Isn’t the main objective of Bitcoin to send money anywhere over the internet? #IndiaWantsCrypto

— razi alam⚡ (@razivict) December 2, 2021

“A ban would mean banning Web 3.0. A major exodus of startups from India. Hoping for the best, I am starting to prepare for the worst.”, — wrote user Harsh_Mkw.

Banning private wallets will mean banning web3. Major exodus of startups from India.
Hoping for the best, starting to prepare for the worst

— Harsh Makwana // 브:ಷ (@Harsh_Mkw) December 3, 2021

Authorities in India said there are no plans to recognise Bitcoin as currency.

In November, the RBI permitted the possibility of a pilot CBDC launch in the first quarter of fiscal 2022.

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