India may be moving away from its initially hostile stance towards cryptocurrencies and could soon classify Bitcoin as an asset class.
The New Indian Express reported that the Securities and Exchanges Board of India (SEBI) will oversee regulations for the cryptocurrency sector after Bitcoin was classified as an asset class, citing anonymously to sources monitoring the industry.
According to the report, India’s cryptocurrency industry is in talks with the Ministry of Finance on the creation of new regulations, and a panel of experts within the ministry is working to shape the new rules.
The Economic Times reported in May that the administration had formed a new expert committee after the prevailing view in the previous proposals to ban assets altogether, indicative of the change in the Ministry of Finance’s stance, became obsolete.
While the committee is reportedly looking into the matter, the Cryptocurrency Regulatory Bill will likely be discussed at the upcoming Monsoon Session of Parliament.
Ketan Surana, Director and CFO of Coinsbit, told New Indian Express:
“We can definitely say that the new committee working on cryptocurrencies is very optimistic about cryptocurrency regulation and legislation.”
Sumit Gupta, co-founder and CEO of cryptocurrency exchange CoinDCX, also expressed hope that the right cryptocurrency regulations will support the digital economy in India.
Gupta tweeted on Thursday:
“India has enormous but untapped potential when it comes to the cryptocurrency space. The right cryptocurrency regulations can turn India into a cryptocurrency hub and lead a digital revolution in India.”
Nandan Nilekani, co-founder and chairman of IT and consulting firm Infosys, on Monday urged the Indian government to accept cryptocurrencies as an asset class.
Speaking to the Financial Times, Nilekani said that cryptocurrencies are too volatile and energy-intensive to be used as a means of payment, but cryptocurrencies can be supported as an asset that can be “traded like a commodity.”
A technology company executive who worked with the Indian government for a long time to create the Aadhar Biometric Identity Program said:
“Just as you can keep some of your assets in gold or real estate, you can keep some of your assets in crypto money. Although I think that crypto money can have the role of an investment tool, I definitely do not think it can be a trading tool.”
Bitcoin, which has suffered a month-long loss of value as a result of a combination of factors, including China’s pressure on cryptocurrencies, has been on the rise since June 8, when El Salvador announced that Bitcoin would be accepted as legal tender in the country.
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