New Planning For Cryptocurrency Regulation In India

Published By Swati Singh, 8 Sep 2021

New Planning For Cryptocurrency Regulation In India

Cryptocurrency has become a popular concept not only in western countries but in India also. People here are very curious about staying abreast with the upcoming crypto events and searching for the latest airdrops etc. If we recall back in 2018 the time when RBI proposed strict cryptocurrency regulation directing all the commercial banks to not indulge in any form of crypto dealings. 

However, in 2020, the ban was lifted by the Supreme Court 2020. Once again there has been a new plan for cryptocurrency regulation in India. According to reports, plans have been in pipeline by the Indian government to give a new meaning to digital currencies in the drafting of a new bill with a motive to segregate the virtual currencies in terms of their utility. 

Cryptocurrency Regulation In India

According to the latest crypto update, there have been plans in India for the regulation of cryptocurrencies as commodities according to their use. The government is coming up with plans to give new meaning to digital currencies according to a new crypto bill that would categorize the digital currencies based on their maximum utility. 

An Indian daily business newspaper reported that digital currencies will soon be categorized in the commodity class for main motives like taxation and based on use including investment, use, and for making payments. One of the experts who is well acquainted with the knowledge of the current cryptocurrency regulation case has stated about the categorization of crypto assets in terms of their use and end-use. 

The expert also added that, before discussing the matter about the functioning of the regulations, the government must be clear about its stance on cryptocurrencies. The concerned person also made a point that the government is not in support of permitting settlements and payments via virtual currencies. Moreover, it would also depend on the government on its stance of selecting the digital currencies which are going to be approved for trading in India. 

If this happens, then it will be the first time to see the classification of digital currencies with the use of technology. According to a news outlet, the government would be emphasizing the end-use of the crypto asset for the regulatory motive. The news regarding the cryptocurrency regulation in making digital currencies as commodities by the government will be based on 2 factors - one is utility and another is the response coming from the crypto community. 

Opinion of Crypto Exchange CEOs

Taking note of the current matter, the chief executive officer of the Indian exchange WazirX, Mr. Nishchal Shetty has also expressed his take on the current issue of cryptocurrency regulation. He feels great about the government showing interest in the matter of regulation of cryptocurrencies. According to Nischal, it will rather lead to clarity for the whole industry and drag more entrepreneurs into this newbie financial sector. It will encourage diminishing the fear of venture capitalists investors regarding investment in the crypto sector in India. 

In the case of traders and investors in the retail sector, the cryptocurrency regulation would raise confidence and stability. Other than Nischal, the chief executive of Giottus exchange, Vikram Subburaj has also expressed his view on the new regulation of cryptocurrencies. He compared the multitude of cases of digital currencies with the daily use of the internet. According to him, there will always be a difference between the investor appeal and the motive of the investors among the top ten digital currencies. 

After Nischal and Vikram came the comment of Edul Patel, then chief executive officer of Mudrex. For him, the sectioning of the digital currencies based on their utility is indeed very thoughtful. It is executed properly, then it would be a remarkable moment for the newly identified asset class. It also indicates that the government does consider digital currencies a more speculated tool. 

Final words

So this was the newest update on cryptocurrency regulation that is going to be initiated by the government according to the new crypto draft bill. It talks about the segmentation of digital currencies according to their maximum use limit. Each of the CEOs of respective exchanges gave their opinion on the issue, sounding positive about this step. It will remove the fear of VC investors regarding crypto investment in India. Let us see till the time the new draft bill is finalized. If you want to stick abreast with the crypto news update daily, then better log on to the Cryptknowmics website.

It is the best website for getting all the new updates on the ongoing developments taking place in the crypto world. Moreover, it allows crypto enthusiasts to brush up their knowledge about the new innovations, price status, blockchain summit, airdrops listings, and so much to explore. In case, one needs to find out about ICO, then he/she can stay abreast with the latest ICO news. So sign up soon on this leading crypto site if you haven't yet.