You are here: Home » Economy & Policy » News
Business Standard

India could bar transactions in crypto, permit holding as assets: Report

India is likely to bar the use of cryptocurrencies for transactions or making payments, but allow them to be held as assets like gold, shares or bonds

cryptocurrency | Bitcoin

Reuters  |  MUMBAI 

bitcoin, cryptocurrency, digital, exchanges

MUMBAI (Reuters) - India is likely to bar the use of cryptocurrencies for transactions or making payments, but allow them to be held as assets like gold, shares or bonds, the Economic Times reported on Wednesday.

Citing sources familiar with the government's thinking, the newspaper said this approach would avoid implementing a complete ban, though the government was keen to stop crypto companies, including exchanges and platforms from actively trying to attract new investors.

The crypto community has made several representations to Indian authorities asking to be classified as an asset rather than as a currency, in order to gain acceptance and avoid a ban.

India's 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 terror financing, sources had said on Saturday.

A person aware of discussions at that meeting said that the overall view within government is that steps taken should be proactive, "progressive and forward-looking" as cryptocurrencies represented an evolving technology, the newspaper reported.

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

The Securities and Exchange Board of India (Sebi) could be designated as the regulator, though that has not been finalised, the newspaper reported.

The Reserve Bank of India has so far appeared very reluctant to accept cryptocurrencies, expressing concerns over potential risks to macroeconomic and financial stability, and capital controls.

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 there was a need for deeper discussions, and noting the lack of a well-informed debate in the public domain.


(Reporting by Swati Bhat; Editing by Simon Cameron-Moore)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Wed, November 17 2021. 13:59 IST