India Won't Ban Cryptocurrency, Will Regulate It As New Asset Class

After much speculation that all private cryptocurrencies would be banned in the country, India’s new crypto bill proposes to regulate digital assets as a new asset class.

What Happened: A Cabinet note circulated by the government states there will be no ban on cryptocurrencies, according to a report from local publication NDTV.

The government will instead regulate crypto as an entirely new asset class dubbed “crypto-assets,” which will fall under the jurisdiction of India’s securities regulator Securities and Exchange Board of India (SEBI).

See Also: Ethereum Outshines Bitcoin, Shiba Inu Leaves Dogecoin In The Dust — Are We In For An 'Explosive' Alt Season?

The bill also states that cryptocurrency won’t be allowed for payments in the country and it is not recognized as legal tender.

Individuals will need to declare and transfer their crypto to Indian crypto exchanges as they won’t be permitted to hold their assets on private wallets or foreign crypto exchanges.

The government also plans to issue its own Central Bank Digital Currency (CBDC), which will be governed and monitored by the country’s central bank.

The news was largely viewed as a positive development and markets reacted favorably as crypto prices traded at a premium on Indian exchanges.

At press time, Bitcoin BTC/USD was trading at $59,500 on Indian crypto exchange WazirX, whereas it traded at $56,700 on Binance.

Photo: Ewan Kennedy on Unsplash