0

0

0

0

0

0

0

0

0

Cryptocurrency regulation: Govt considering allowing trading for some investors, says report

Mini

According to the report, the bill for the regulation of cryptocurrencies is likely to specify a minimum amount for investments in digital currencies.

Cryptocurrency regulation: Govt considering allowing trading for some investors, says report
The government is considering a proposal to classify cryptocurrencies as a financial asset while protecting small investors, BloombergQuint reported, citing people familiar with the matter.
According to the report, the bill for the regulation of cryptocurrencies is likely to specify a minimum amount for investments in digital currencies. It added that use as legal tender is likely to be banned.
As the report says, policymakers, while posting a description of the bill on Parliament’s website late on Tuesday, left some "wiggle room" to include a provision allowing a certain amount of investment in cryptocurrencies. However, no official source has so far responded to this speculation.
The legislative agenda for the winter session said that the proposed law on crypto would permit “certain exceptions” to promote the underlying technology of cryptocurrency and its applications. It added that the law will create a “facilitative framework” for the creation of the official digital currency for the country.
This bulletin triggered a sell-off on Wednesday due to the uncertainty around crypto legislation. Major cryptocurrencies -- including Shiba Inu and Dogecoin -- were down by more than 10 percent in trading on the WazirX platform, one of India’s leading cryptocurrency exchanges. Bitcoin, the largest cryptocurrency, fell 26 percent on Wednesday, before recovering from losses.
Policymakers have been discussing the risks of cryptocurrency for several quarters. Earlier this month, Prime Minister Narendra Modi led a review meeting on cryptocurrency. This was followed by a Parliamentary Standing Committee on Finance meeting -- led by BJP MP and former Union minister Jayant Sinha -- with industry associations and experts on cryptocurrency.
In both the high-level meetings, as per reports, there was a consensus that cryptocurrency won't be banned but regulated.
Meanwhile, Reserve Bank of India Governor Shaktikanta Das recently expressed concerns over cryptocurrencies posing "a threat to macroeconomic and financial stability" while adding that the country needs much deeper discussions on the issue.
There are around 15-20 million crypto investors in India, with total crypto holdings of around Rs 40,000 crore ($5.39 billion), according to media reports.
next story