India will abandon a complete ban on cryptocurrencies like Bitcoin (BTC), in favor of regulating them as exchange-traded commodities. By February 2022, the government will submit a corresponding bill, Business Today reports, citing representatives of the Ministry of Finance.
According to the interlocutors of the publication, the inclusion of cryptocurrencies in the legal field implies taxation of transactions with these assets and income received from relevant transactions. Moreover, the Ministry of Finance and the Reserve Bank of India (RBI) are currently “busy finalizing the conceptual framework and the necessary rules.”
According to Finder crypto report, about 30% of citizens own cryptocurrencies in India, but there is no legal framework in the country to regulate this market.
The Reserve Bank of India
At the end of January 2021, Coindesk reported about the Indian parliament’s plan to consider a bill proposed by the government to ban cryptocurrencies. Since April, Indian companies have been required to report transactions with digital assets, volume. As well as advances and deposits “from any persons”.
Earlier in May, the RBI asked banks to terminate relations with Bitcoin exchanges. After that, the regulator urged the controlled institutions not to refer to the canceled directive banning transactions with cryptocurrencies.
In the same month, the government of the country discussed the creation of a committee that will study the regulation and various options for using blockchain. The Ministry of Finance monitors the growing turnover of cryptocurrencies in the country and discusses potential regulatory risks with interested parties.
Recall that previously in September CoinSwitch Kuber was poised to become India’s second crypto unicorn. Later at the beginning of October, the Indian cryptocurrency exchange has raised $260 million; following the results of a Series C funding round. Coinbase Ventures and Andreessen Horowitz led the round, with a valuation of $1.91 billion.
According to CEO Ashish Singhal, CoinSwitch Kuber has become the most expensive crypto company in India.
The exchange has set a goal to increase the number of platform users from 10M to 50M; and launch staking and crypto lending services. CoinSwitch Kuber will create products aimed at institutional investors, innovation funds and education centers in the field of digital assets.