17 August 2022
According to reports from NDTV, the Indian government is not looking to put a blanket ban on Cryptocurrencies but is looking to regulate them.
The reporter Sunil Prabhu said that the cabinet's note includes suggestions for regulation of Cryptocurrencies as assets, controlled by the country’s markets watchdog, the Securities and Exchange Board of India (SEBI).
The note highlights that investors need to disclose their Crypto holdings and keep them to exchanges regulated by SEBI. They will not be allowed to hold their Crypto on foreign exchanges or in private wallets.
Prabhu also said that the government is working on its CBDC, and the Reserve Bank of India (RBI) will govern and monitor it. According to the note, the government has no plans to recognize any Crypto as currencies or legal tender.
“[Cryptocurrency] as a legal tender will not be accepted. That is a clear no. I think that that is what even the prime minister in his deliberations at that meeting made absolutely clear to ensure that does not take place. I think they will do it [CBDC] as a standalone virtual currency for the RBI at a later stage, so you can definitely expect a virtual currency soon, but it will take place at a different time,” said Prabhu.
Many Indian Crypto investors have welcomed the cabinet's decision and expressed relief for no longer having to stress about the ban.
Disclaimer: The author’s thoughts and comments are solely for educational reasons and informative purposes only. They do not represent financial, investment, or other advice.