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Government may ban crypto transactions, allow asset holding: Report


Government may ban crypto transactions, allow asset holding: Report

India’s digital currency market is worth $6.6 billion by May 2021, according to Chainalysis.

Mumbai: India is likely to ban the use of cryptocurrencies for transactions or payments, but allows them to be held as assets such as gold, stocks or bonds, Economic Times reported on Wednesday.

Citing sources familiar with government thinking, the paper said this approach would avoid implementing a ban outright, although the government wants to prevent crypto companies, including exchanges and The platform actively tries to attract new investors.

The crypto community has raised several representatives on behalf of the Indian authorities asking to be classified as an asset instead of a currency, in order to gain acceptance and avoid bans.

Prime Minister Narendra Modi last week chaired a meeting to discuss the future of cryptocurrencies amid concerns that unregulated crypto markets could become avenues for money laundering and sponsoring terrorism, sources said Saturday.

A person familiar with the discussions at that meeting said that the general view within the government was that the steps taken should be proactive, “progressive and forward-looking” as cryptocurrencies represent a growing technology. development, the newspaper reported.

Sources told the newspaper that details of a bill were still being finalized and that the cabinet could receive the proposed legislation in the next two to three weeks for consideration.

The Securities and Exchange Commission of India (SEBI) could be appointed as the regulator, although that has yet to be finalized, the newspaper reported.

The Reserve Bank of India (RBI) has so far shown great reluctance in accepting cryptocurrencies, voicing concerns about the potential risks to macroeconomic and financial stability and control. capital control.

India’s digital currency market was worth $6.6 billion in May 2021, compared with $923 million in April 2020, according to blockchain data platform Chainalysis.

RBI Governor Shaktikanta Das reiterated the central bank’s concerns at an event on Tuesday, saying further discussions are needed and noting the lack of an informed debate in the sector. public sector.

(This story has not been edited by NDTV staff and is auto-generated from the syndication feed.)

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