India’s cryptocurrency regulations are yet to be finalized, but sources familiar with the matter have indicated that the country’s top regulator may classify it as an asset class, the Economic Times reported .
This news comes just a day after El Salvador passed a law making bitcoin legal tender.
If the sources are to be believed, the cryptocurrency ecosystem in India could see an end to their 3-4 year struggle to convince the government that regulating the crypto space would be more beneficial than banning it altogether.
The Ministry of Finance has also changed its tune in the recent past, coinciding with the rise in Bitcoin adoption along with its price to all-time highs.
The cryptocurrency ecosystem in India is one of the fastest growing especially during the bullish period as many cryptocurrency exchanges in the country recorded a twofold increase in new user registration and trading volume.
Thus, the government’s early hostile attitude would not only have killed a nascent ecosystem, but also led to the loss of a powerful source of income for the state.
India’s crypto bill may find a place in the upcoming parliament session as the last budget debate session approaches.
Many hope that the recent change in the position of the Ministry of Finance, as well as the Central Bank of India towards cryptocurrencies, may lead to the preparation of more positive regulations.
The Reserve Bank of India (RBI) recently directed banks to refrain from banning cryptocurrency transactions for clients and not to resort to the 2018 circular which was subsequently challenged and overturned by the Supreme Court in March last year.
The major banks in the country were warning users involved in crypto transactions using a 2018 post.
El Salvador’s adoption of Bitcoin as a legal currency has also led to a wave of adoption that may affect many countries around the world.