The Indian crypto regulations are yet to be finalized, but sources familiar with the matter suggested that the top regulatory body in the country may classify it as an asset class, reported The Economic Times. The news comes just a day after El Salvador, a small Central American nation passed a bill to make Bitcoin a legal tender.
If sources are to be believed, the Indian crypto ecosystem could see an end to their 3-4 year-long struggle to convince the government on why regulating the crypto space would be much more beneficial than outright banning it. The finance ministry has also changed its tune in the recent past as Bitcoin adoption along with its price rose new all-time-highs.
The Indian crypto ecosystem is one of the fastest-growing especially during the bull run as several crypto exchanges in the country registered a multi-fold increase in new user registration and trading volume. Thus the early hostile stance of the government would have not just killed a budding ecosystem, but also led to the loss of a potent revenue source for the state.
The Indian crypto bill was tabled during the last budget session, but due to the pandemic led short discussions it never made it to the discussion stage. However, many hope the recent change in the stance of the Finance Ministry, as well as the Indian Central Bank toward crypto, could lead to positive regulations.
RBI recently instructed banks to refrain from blocking crypto transactions of customers citing their 2018 circular that was later challenged and quashed by the Supreme Court in March last year. The top banks in the country had started issuing a warning to users involved in crypto transactions using 2018 circular.
The El Salvador adoption of Bitcoin as a legal tender has also triggered an adoption spree that might influence several countries across the world.