The Future of Cryptocurrency in India

Crypto investors in India as well as people around the world have been wondering how the winter session of Indian Parliament where the bill will be discussed will affect the crypto world.

Numerous reports from various stakeholders have caused serious confusion about crypto assets in India. The Reserve Bank of India (RBI) who is central bank of India has overestimated the risks associated with cryptocurrencies and the financial system, and the Indian Government seeks to regulate its asset classes. A new cryptocurrency bill instead of enforcing a complete ban.

Exchanges, investors, and the entire Crypto community have closely followed the bill which was introduced in Indian Parliament to see how difficult or easy it is to maintain cryptocurrency trading. There has been speculation that, like the Chinese government, the Indian government could take a firm stand against cryptocurrency bans.

Wait a minute! This time there seems to be better visibility into what was discussed about cryptocurrencies. Rumors of a complete ban do not seem to be on the list. However, as proposed by the Blockchain and Crypto Assets Council (BACC) in the last week of November 2021, there are provisions regarding the regulation of private cryptocurrencies. As emphasized by BACC, the ban on cryptocurrencies can lead to more Illegal and Unlawful activities. The best way to regulate the use of digital Cryptocurrency is to regulate them.

Global industry experts believe that when Indian regulators draft laws on crypto assets, they should keep in mind that cryptocurrencies are an integral part of the entire blockchain ecosystem.

While most other governments are also struggling to formulate crypto rules, regulators in several countries and the crypto industry around the world are eagerly awaiting crypto legislation to set rules for digital coins, tokens, and virtual currencies.

There has also been news that cryptocurrencies will be considered and referred to as crypto assets. It is also likely that the Securities and Exchange Commission of India (SEBI) will be the same owner for the regulators of these new currencies (or assets). Call crypto assets and classify them as securities so that they do not become an obstacle to currencies launched by the RBI when regulated under the SEBI.

Exchanges on which crypto assets are traded must comply with regulatory requirements set by SEBI. If any violation in any regulatory requirement is found then, a fine of 5 to 20 Crore rupees may be imposed. Exchanges are required by the government to register with SEBI to ensure that only serious and legitimate exchanges are supported on the market. In this way, the exchange will regularly monitored and controlled.

The bill is expected to be presented in the third week of the winter session of Indian Parliament, as there does not appear to be any overlap between the local currency issued by RBI and cryptocurrencies.

Well, it doesn't seem like an easy task for the SEBI. SEBI has refused to show interest in such volatile and sensitive topics as cryptocurrencies. One reason is that they have not regulated earlier any asset or currency that is not backed by a strong tangible asset.

After some clarity has been made, the India Parliamentary Board will have final say on this bill and then it will be passed as an act once the President gives its consent. We should keep our hopes high that the bill will pass in the betterment of the Investors.

But before the official announcement made by the Government of India I wants all crypto enthusiasts to know and not blindly believe the rumors of laws and legislation. Check the source of the information. Do your own research and have hope! Opinions presented in this article are based on reports. To confirm the facts, we will have to wait for an official announcement from a government or regulatory body.