thecoinrise.com
According to a Ministry of Finance official, the Indian government is expected to reveal its highly anticipated cryptocurrency rules in February 2022. With the crypto regulation expected in the following budget hearing, the regulatory cloud may finally clear as per a report by a report by Business Today.
The government has been hesitant to embrace cryptocurrencies and, so far, has made no decision about whether or not to prohibit or regulate the trade.
India’s journey to crypto regulation
The threat of a complete ban first emerged in 2019 when an inter-ministerial committee set up in 2017 submitted draft legislation.
The committee recommended that cryptocurrencies be banned in the country in 2018. They also called for penalties for offenders. The Reserve Bank of India (RBI) effectively prohibited Bitcoin, the country’s central bank.
When the RBI’s prohibition was lifted by the Supreme Court in early 2020, there was a lot of optimism. Despite this, investors were concerned about a lack of regulation since reports persisted about a ban.
The creation of another inter-ministerial committee earlier this year followed the prior committee’s recommendations. However, according to Finance Minister Nirmala Sitharaman, cryptocurrencies will not be entirely banned by the government.
Recent events have demonstrated that the government is considering regulation rather than prohibition in the near future. The government will almost certainly designate cryptocurrencies as a financial asset class and regulate them in accordance with relevant laws. They’ll also charge appropriate tax rates on transactions and gains.
Sitharaman said in August that a crypto bill was near to completion and would be submitted to the cabinet for approval before being brought forth in Parliament. However, no draft of the crypto legislation has been made public yet.
Crypto adoption at the community level
Meanwhile crypto adoption in the country is peaking. Currently, there are 15 million retail crypto investors in the country, nearly matching the number of revenue taxpayers. The cryptocurrency community is growing at the local level as more individuals discover Bitcoin in smaller towns and cities.