April 17, 2023

India Issues Fresh Take on Crypto Assets

Crypto News India: A Fresh Take on Crypto Assets

As the cryptocurrency industry continues to develop and expand, India has recently issued a fresh take on digital assets. The country's Ministry of Finance recently released a document titled “Banning of Cryptocurrency and Regulation of Official Digital Currency Bill, 2019” which sets forth a new perspective on the regulation of cryptocurrencies.

The document is aimed at laying out the regulatory framework for digital assets within the country which would include banning their use as legal tender. It will also define “official digital currency” as those issued by India's central bank or by any other public authority authorised to do so.

The document outlines various types of crypto assets, such as cryptocurrency tokens and virtual currencies, and seeks to establish clear rules for their regulation and control. In particular, it seeks to recognise private cryptocurrencies as commodities like gold or oil, but prohibits anyone in India from dealing with them except through authorised persons.

The bill further proposes that all payments made using virtual currencies should be reported to the national authorities. Moreover, it suggests that entities involved in virtual currency transactions should be registered with the Securities and Exchange Board of India (SEBI). This will help limit money launderinty through crypto activities.

The Indian government has also clarified its stance on cryptocurrency mining activities. According to the bill, such activities must be carried out with appropriate securities guidelines in place and are subject to periodic monitoring by law enforcement agencies.

This news from India reflects a rising trend among nations around the world who are taking steps towards developing a regulatory framework for virtual currencies. While their aims may vary from one jurisdiction to another, all these initiatives provide some clarity about how these emerging asset classes can be governed going forward.

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