India will allow Bitcoin as an asset and ban it as a currency
The government of India has been undecided about regulating or banning Bitcoin (BTC) and other cryptocurrencies. But now, new information suggests that the South Asian country will finally allow BTC as an asset, like gold and bonds.
However, on the other hand, the Indian government must ban the largest cryptocurrency in market value as a currency. In other words, Bitcoin cannot be used in daily transactions for payments. The information was provided by the local news portal The Economic Times.
The new developments come shortly after the country’s prime minister presided over a meeting that decided not to ban Bitcoin. Rather, analyze it and regulate it.
“The government is finalizing a legislation that will pave the way for regulating the trade in crypto assets, while preventing the use of digital currencies for payments and transactions,” says the article published on Wednesday (17).
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According to the portal, the country must adopt a different approach to cryptoactives. India has one of the largest crypto communities in the world. Thus, any decision taken in the country can have a wider effect on the ecosystem as a whole.
Despite this, the Indian government has not yet presented significant guidelines for the sector. However, legislation is under preparation and must be brought to the cabinet for consideration before the end of the year.
The government has also not decided who will oversee the country’s crypto industry. According to local sources, the Securities and Exchange Board of India (SEBI) is at the forefront as the most likely regulatory body.
Also according to the source, the government is also working on tax aspects. In that sense, it is expected that the next legislation will address this.