Media: Indian cryptocurrencies to be regulated as assets

The Government of India will ban the use of cryptocurrencies for payments, but will allow trading and holding them as assets, like shares, gold, or bonds. The The Economic Times reports, citing sources familiar with the matter.

According to the publication, authorities are finalising the regulation bill. It is expected to be brought before the Cabinet within the next two to three weeks for consideration.

The document will be presented during the Winter Session of Parliament in February 2022.

The bill envisages a ban on active advertising of crypto offerings by crypto companies, including exchanges and trading platforms.

The government is also working on cryptocurrency taxation, and the proposed law is expected to address this issue, according to a person familiar with the matter.

In early 2021, media reports spoke of a possible ban on cryptocurrencies in the country. This idea is supported by the Reserve Bank of India (RBI); the government favours a middle-ground solution, The Economic Times noted.

In the Cabinet, officials believe that steps taken on cryptocurrencies should be “active, progressive and forward-looking,” as this is a developing technology, a person familiar with the discussions told the newspaper.

On Monday, 15 November, the parliamentary Finance Committee held a meeting with representatives of the crypto industry. According to The Economic Times, lawmakers also backed the idea of regulation rather than a ban.

Earlier, RBI Governor Shaktikanta Das said that cryptocurrencies raise concerns for the regulator in the context of macroeconomics and financial stability.