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The Indian government reportedly intends to introduce cryptocurrency regulations by the next general budget, which will take place in February of next year. Instead of banning cryptocurrencies, like bitcoin, the government is likely to regulate crypto assets as commodities, according to reports.

Indian crypto law could arrive as early as February

The Indian government plans to introduce cryptocurrency regulations in February next year, local Business Today newspaper reported, adding:

Finance ministry officials told Business Today Television that a cryptocurrency law will most likely be passed by the next general budget.

The 2022-23 budget is expected to be presented on February 1 during the first half of the parliament’s budget session, which typically begins the last week of January.

In addition, the government is likely to regulate cryptocurrencies as an asset class, in the same way that commodities are regulated, with appropriate taxation on transactions and earnings, the outlet said. In June, the government reportedly said the Securities and Exchange Board of India (SEBI) would oversee the regulation of the cryptocurrency industry once crypto is classified as an asset class.

Another official told the publication that officials from the Ministry of Finance and the Reserve Bank of India (RBI) were tweaking the regulatory framework for crypto. However, the central bank recently said it still had “serious concerns” about the cryptocurrency.

India does not currently directly regulate the crypto industry. The government has considered a bill titled “Cryptocurrency Ban and Official Digital Currency Regulation” which seeks to ban all cryptocurrencies, like bitcoin, except those issued by the state. The bill was drafted by an inter-ministerial committee headed by former finance secretary Subhash Chandra Garg. It was released in July 2019.

However, recent reports suggest that the government may have moved away from the idea of ​​banning cryptocurrencies. In July, the finance minister said the crypto bill was ready for Cabinet. The chairman of India’s Parliamentary Standing Committee on Finance explained in September that India’s cryptocurrency legislation would be “separate and unique.”

Wazirx cryptocurrency exchange CEO Nischal Shetty commented on India’s upcoming crypto regulations:

It’s good to hear that India is planning to introduce a crypto regulation bill next year. Crypto has reached a stage where countries are no longer talking about a ban. It is now a question of “How to regulate”.

Do you think India will introduce crypto regulations in February of next year? Let us know in the comments section below.

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