1 August 2026
India to Reportedly Regulate Cryptocurrencies as an Asset Class
According to Economic Times, the Indian government is working on finalizing Cryptocurrency regulations. The government is likely to allow Cryptocurrencies as assets like gold, shares, or bonds. However, they will bar the use of Cryptocurrencies for transactions or making payments. Last year, the country was planning to impose a blanket ban on digital assets.
It's a need of an hour for India to regulate Crypto as an asset class as the government fears its use in illegal activities. Thus, this approach will help it avoid implementing a complete ban of Cryptocurrencies in India. The Indian Prime Minister Narendra Modi held a meeting last week to discuss the future of Cryptocurrencies.
The Securities and Exchange Board of India (SEBI) could become the chief Crypto regulator in the country because the reports suggest Crypto will be regulated as an asset class. Besides, the Reserve Bank of India (RBI) is still not convinced with the acceptance of Cryptocurrencies and expressing concerns over potential risks to financial stability, macroeconomic, and capital controls.
In spite of uncertainty around Crypto regulations in India, the Crypto community has risen to new highs. As per blockchain data platform Chainalysis, India’s digital currency market was worth $6 billion in May 2021. Many VC firms' interest in Crypto and Blockchain has risen despite the unclarity. Hence, it highlights the massive potential that Crypto market leaders see in India.
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.
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