A recent Cabinet note by the government on the proposed cryptocurrency bill – to be presented in the Parliament’s winter session – suggested regulation of private cryptocurrency rather than banning it. The note also says that crypto will not be recognised as a legal currency in India. The legislation describes Cryptocurrency as Cryptoasset, according to the note.
The Crypto Asset Bill proposes to prohibit the usage of crypto asset as currency substitutes or as payment systems for remittances. The bill also proposes to establish a facilitative framework for the distributed ledger technology and also lay the groundwork for the creation of the official digital currency to be issued by the Reserve Bank of India (RBI).
RBI’s proposed virtual currency has not been clubbed with the new crypto bill. However, the central bank will regulate issues related to cryptocurrency. Here’s what experts from the crypto industry have to say about the crypto asset bill:
Defining moment crypto startup community in India
”Since the beginning, we have supported the classification of cryptocurrency as an asset class, similar to gold, stocks, and real estate. It will be interesting to see the timeline and manner in which the crypto bill is implemented across the diverse crypto industry in India. Crypto is officially all set to go mainstream in India as this will further boost investor confidence and encourage the investors sitting on the fence to start their crypto journey.
The crypto startup community in India sees this as a defining moment that will provide much-needed recognition for the hard-working workforce employed in the crypto industry and will generate large-scale employment opportunities,” said Shivam Thakral, CEO, BuyUcoin.
More Foreign Exchanges Likely To Enter India
”When OKEx entered the Indian market early this year, we were optimistic about India’s strong policy framework we are now finally witnessing India’s crypto policy taking shape to ensure a better future for the entire crypto ecosystem in India.
We can now expect more foreign exchanges to enter India and invest in building the required technical infrastructure and hiring manpower to run their operations. The global crypto community will be closely monitoring the situation in India as we into the finer details of India’s crypto law,” said Jay Hao, CEO of cryptocurrency exchange, OKEX.com – a Seychelles-based cryptocurrency exchange platform.