India is likely to recognize crypto as an asset class

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The proliferation and growing interest in blockchain technology and cryptocurrency have sparked repeated calls for financial regulation around the world. India is now joining a growing list of countries like the United States, Brazil and Pakistan that have raised the possibility of regulating virtual currencies, in accordance with the laws of the United Kingdom, Singapore and Canada.

Indian Finance Minister Nirmala Sitharaman said the government was preparing to introduce a new cryptocurrency bill, with a draft pending Cabinet approval, Finance in Bold reported. Under the upcoming bill, cryptocurrencies would likely not be accepted as legal tender. Instead, they would be recognized as a tradable asset class that has a market. There could also be a provision that offers an exit option for people who have already invested in digital currencies.

But remarks detailed in a recent report by a high-level committee tasked with studying cryptocurrency issues, headed by Economic Secretary Ajay Seth, take a stronger stance, recommending strict measures to ban all private cryptocurrencies in India, with the exception of government issued ones. digital assets, according to Finance in Bold.

The recommendation comes amid India’s reluctance to take concrete steps to stop the use of virtual currencies, despite growing concerns from lawmakers and regulators in recent years.

The Reserve Bank of India (RBI) has expressed similar concerns regarding cryptocurrencies traded in the market. RBI Governor Shaktikanta Das said he had conveyed the banks’ concerns to the government and would await the Cabinet decision, which is expected by November of this year, according to the report.

While India has yet to take concrete action so far, other countries have made their stance on digital assets clear. In July, El Salvador became the first country to accept Bitcoin as legal tender, as China continues its crackdown on renowned cryptocurrency in what appears to be a strategy to launch a central bank digital currency (CBDC). .

Read more: India considers possible cryptocurrency turnaround

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NEW PYMNTS DATA: 58% OF MULTINATIONAL COMPANIES USE CRYPTO-CURRENCY

By the way: Despite price volatility and regulatory uncertainty, a new study from PYMNTS shows that 58% of multinational companies are already using at least one form of cryptocurrency, especially when transferring funds across borders. The new Cryptocurrency, Blockchain and Global Business survey, a PYMNTS and Circle collaboration, polling 500 executives examines the potential and pitfalls that crypto faces as it becomes part of the mainstream financial sector.

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