Crypto regulations may be introduce in budget !!!

The proposed framework is likely to veer away from an earlier approach that had proposed a complete ban on cryptocurrencies. Instead, the government is likely to opt for regulating cryptocurrencies as an “asset” class, somewhat on the lines of commodities, with appropriate taxation of transactions and gains.

Officials of the Finance Ministry and the Reserve Bank of India (RBI) remain engaged in fine-tuning the conceptual framework and the necessary regulations, another official added.

The thinking, the Finance Ministry official said, was towards a regulation that seeks to avoid potential pitfalls. “What should not happen tomorrow is that if I start a personal digital currency, and after good marketing everybody buys it and once it has appreciated, I run away since I am a private player! Everybody has actually bought that currency by using other assets. Government needs to look at regulation in order to avoid the above”.

Currently, India does not have any legal framework governing the issuance, use, and trade of cryptocurrencies. India is said to be among the fastest growing cryptocurrency markets globally, with an estimated 15 million Indians having invested in private cryptocurrencies in the recent past. A combination of factors including dozens of start-ups operating in this space has fuelled an unprecedented investment boom, despite the seeming risks of investing in an unregulated product.

Cryptocurrency trading in India has witnessed a sharp uptick since May this year, after the RBI clarification that told regulated banks to not warn customers against cryptocurrency trading. That move capped a legal challenge to an earlier 2018 order by the central bank barring cryptocurrency transactions.
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