Indian Lawmakers are trying to find a middle ground between crypto and the ecosystem. As the country is still yet to decide between banning crypto or regulating it.
The final call on the crypto bill will be likely during the next budget discussion in February 2022.
Indian authorities are not outright banning cryptocurrencies nor accepting them as legal tender. Like most other countries, India has also kept an observing stance for digital assets.
A source familiar with the development said to The Economic Times said that the law should be drafted in such a way that it can be executed. All the while ensuring a safe way for technological developments in the digital space.
Recently, a detailed presentation was made before policymakers on the pros and cons of over-regulation adopted by other countries including investments made by Indians in digital currencies. It seems like some more meetings will finalize the taxation aspects of digital currencies adding that after legal vetting.
All of these speculations and uncertainty will come to an end when the country’s fate over crypto will be announced during the next budget discussion in February 2022.
However, the government is likely to regulate cryptocurrencies like commodities. And in June, the government reportedly said that the Securities and Exchange Board of India (SEBI) will oversee regulations for the cryptocurrency sector after crypto is classified as an asset class. And also In July, the finance minister said that the crypto bill was ready for Cabinet.
Indian Growth of Cryptocurrencies
The adoption rate of crypto in India is soaring on a record high. Data signals that the country ranked second in Chanalysis’ Global Crypto Adoption Index for 2021 and currently has 15 million retail crypto investors close to the number of income taxpayers in the country.
The developing country’s market size has increased by several folds. From $52.1 million in FY2020 to $74.2 million in FY2021. Analysts also suggest that the growth will surge over 200 percent to reach $241 million by 2030.