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Will India classify Crypto as an asset class?

Will India classify Crypto as an asset class

According to the New Indian Express report, India may classify Bitcoin as an asset class soon. The Indian Securities and Exchange board will oversee regulations after Bitcoin classification is done.

El Salvador

Moreover, El Salvador of Central American country has adopted Bitcoin as a legal tender. The report suggested that India’s crypto industry is in talks with the finance ministry regarding new regulations.

Expert Committee

Furthermore, the report said that an expert committee at the ministry is studying the matter. There are chances for the cryptocurrency regulation bill to get tabled in the parliament during the upcoming monsoon session.

Nandan Nilekani

Nandan Nilekani, the Infosys co-founder, has said that India should accept cryptocurrencies as an asset class. He also said that Indians could invest in Crypto just like they have gold or real estate assets. He also said that there is a role for Crypto as a stored value but certainly not in the transactional sense.

Why is Bitcoin classification as an asset class so important?

According to the parliament session agenda, the cryptocurrency bill wants to create a facilitative framework. This is to make an official digital currency that the Reserve Bank of India issues. They are also looking to prohibit all the private cryptocurrencies in India.

Bitcoin’s classification

Bitcoin’s classification as an asset class might take it out of the purview of private cryptocurrencies. Moreover, it can also make Bitcoin into gold and other taxable assets.

Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Crypto is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Crypto market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.