The tide may have finally turned on cryptocurrencies in India as reports point to a softer government stance on crypto.
According to a report by The New Indian Express Thursday, the government’s hostile stance towards Bitcoin (BTC) appears to be shifting towards more sensible cryptocurrency regulation.
According to insider sources quoted by the publication, authorities have dropped previous plans for a blanket Bitcoin ban in order to classify cryptocurrencies as an alternative asset class.
The Securities and Exchange Board of India is reportedly tasked with overseeing crypto regulations in the country in collaboration with the Treasury Department.
These inside sources also claim that parliament will be debating a comprehensive bill on crypto regulation during the monsoons session starting in July. A panel of experts set up by the Treasury Department is reportedly investigating crypto-regulatory protocols and its findings could be part of parliamentary deliberations next month.
Commenting on the positive signals emerging on the crypto regulatory front, Ketan Surana, a member of the Internet and Mobile Association of India:
“We can definitely say that the new committee working on cryptocurrencies is very optimistic about regulation and legislation for cryptocurrencies.”
Back in May, Indiatech.org, a technology lobby group in India, urged the government to define crypto as a digital asset rather than currency.
Meanwhile, the Reserve Bank of India remains a staunch crypto critic, with the central bank recently saying that its stance on cryptocurrencies remains unchanged. However, RBI has distanced itself from reports that it has hired banks to block services for crypto exchanges.
In fact, India’s Supreme Court lifted a 2018 RBI ban in March 2020 that banned banks from serving cryptocurrency exchanges. As previously reported by Cointelegraph, three major crypto exchanges – Kraken, Bitfinex and KuCoin – want to enter the Indian market.