New Delhi: Last year, the Indian government came really close to enacting a blanket ban on cryptocurrencies. A measure has been presented in this respect ahead of the Union Budget this year. However, things have changed considerably in the last year, and it appears that the finance ministry has abandoned the goal of outlawing cryptocurrencies. The government is now contemplating designating cryptocurrency as a digital asset and enacting rules to protect investors.
In India, cryptocurrencies are still legal, but they are not regulated. As a result, investors are more prone to scams and fraud. The crypto sector has been pushing for more inclusion, with some even calling for the government to declare cryptocurrency legal tender . While that may seem like a far-fetched scenario, the report claims that the administration is seeking a middle ground that “balances the interests of all parties.”
The government feels that substantial amounts of money have been invested in cryptocurrencies by Indian investors, and that they should be outright banned. It is currently preparing to design a Crypto Bill that will be implemented efficiently in tandem with technical advancements in the digital domain. According to the report, a lengthy discussion was held and a presentation was given to officials. This addressed all of the advantages and disadvantages of cryptocurrency. It also included the regulatory approaches employed by other nations, as well as the amount of money invested in digital currencies by Indian dealers.
If the measure is introduced and finally enacted by Parliament, Bitcoin and other cryptocurrencies will be classified as digital assets rather than legal currency. The key laws may revolve around who is allowed to generate and trade cryptocurrency in India. Anyone with a functioning smartphone or laptop and access to the internet may immediately generate a new coin and begin selling it. Scams have a lot of room to operate in this environment. The law might also include safeguards to protect investors from fraud. It is expected to be introduced in the Union Budget next year.