Cryptocurrencies may be allowed as asset, not as currency;bill in Winter Session Likely to be introduced

The central government is unlikely to ban cryptocurrencies outright, preferring instead to take a cautious approach. Government is Likely to introduce bill on crypto currencies during the winter session of Parliament, which begins November 29, amid worries that such currencies are being used to deceive investors and fund terrorist activities, according to sources. They may not be accepted as a form of payment or settlement, but they could be held as an asset similar to stocks, gold, or bonds.

There are currently no specific restrictions or prohibitions in place in the country regarding the use of crypto currencies. In light of this, Prime Minister Narendra Modi met with senior officials on Saturday to discuss crypto currencies, and there are signs that robust regulatory action may be taken to address the issue. The government is nearing completion of laws that will regulate crypto asset trading while prohibiting the use of virtual currencies for payments and transactions.

According to the sources, the proposed regulation would focus on investor safety because crypto currencies are classified as a complicated asset class. The government intends to introduce the measure on crypto currencies in the first week of the winter session, once it has been cleared by the Union Cabinet.

“As per Sources”, the Securities and Exchange Board of India (Sebi) may be named as the regulator, Although a final decision has yet to be made,

Central Government is also working on Taxation aspects like Applicability of GST & Income Tax, which would be also addressed in upcoming legislation, according to the source.

RBI Governor Shaktikanta Das raised his concerns about cryptocurrencies for the second time in a week on Tuesday, stating that virtual currencies had “much deeper vulnerabilities” that might threat the country’s economic and financial stability.

The announcement comes only days after the Prime Minister held a meeting on cryptocurrencies in response to concerns over false claims of high profits on cryptocurrency investments.