The Indian government may recognize bitcoin as an asset class, the New Indian Express reported on Thursday. This is in stark contrast to the earlier stand of the government to impose an outright ban on digital assets. Last month, we reported on the government mulling the formation of an expert committee to study the possibility of regulating cryptocurrencies in the country.
The Securities and Exchange Board of India (SEBI) will oversee regulations for the cryptocurrency sector after Bitcoin’s classification as an asset class, the New Indian Express said quoting sources. It was reported last month that crypto exchanges had sought SEBI or a new regulator to be the market regulator for digital assets.
As per reports, the draft legislation regulating digital assets is likely to be tabled in the Parliament during the upcoming monsoon session. The development comes days after the Reserve Bank of India (RBI) governor, reiterated that there were still major concerns that have been communicated to the government. On May 31, RBI issued a clarification in the background of HDFC and SBI citing the now quashed circular to restrict cryptocurrency-related transactions.
Nations like the United States, the United Kingdom, Japan, and Australia have regulated the cryptocurrency market with AML and KYC safeguards. States in the USA are enacting laws to recognize and regulate digital assets. Hong Kong last month announced regulating crypto markets and barring retail investors from accessing crypto markets. On Tuesday, in a historic move, El Salvador recognized bitcoin as a legal tender. While El Salvador is not a crucial country in the world economy, the move definitely signals the evitable.