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.
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.
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, 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 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.