The Indian government may soon strike a more conciliatory tone on bitcoin, moving away from its initial plan to impose an outright ban on private cryptocurrencies.
The government may classify bitcoin as an asset class, industry sources told The New Indian Express, adding that the Securities and Exchange Board of India (SEBI) will regulate the cryptocurrency sector.
The cryptocurrency regulation bill could be tabled during the monsoon session of the parliament set to begin next month, a source told the Indian publication.
Major crypto exchanges like U.S.-based Kraken, Hong Kong-based Bitfinex and rival KuCoin are already scouting for India’s entry in hopes that the market will explode once regulatory uncertainty subsides.
Authorities across the globe are taking steps to regulate the fast-expanding market. Early today, the Basel Committee on Banking Supervision recommended stricter capital requirements for holding bitcoin.
The Indian crypto industry has seen solid growth, with millennials embracing bitcoin ever since the country’s Supreme Court set aside the Reserve Bank of India’s crypto banking ban in March 2020.