India to Come Up with Regulatory Framework for Cryptocurrencies
In what could be termed as a complete reversal of decision by the Indian government, speculations are rife that authorities will come up with a regulatory framework that will pave the way for digital currency operations in the country. The move will come to fruition in February 2022. Unlike the last time, the government will not go ahead with a complete ban on digital assets.
There may be many reasons for the government’s stance to regulate cryptocurrencies in the country. One of the primary motivations is how the economy can potentially benefit from including digital coins in the country. Regulators will also decide and debate whether digital coins would come under the asset class. If so, these digital assets would also be levied with taxes.
It is important to note that digital currencies are very popular in India and the world’s second most populous nation can become instrumental in adopting cryptocurrency on a mass scale. The initial stance adopted by the Indian government was very rigid, with regulators demanding a complete ban on digital currencies. This was out of fear that anti-social elements could misuse Bitcoin and other altcoins for dubious purposes.
However, these apprehensions can be addressed by creating a proper regulatory framework for digital currencies. It will be important to witness the stand the Indian government ultimately takes regarding the regulation of digital coins and the possible implications this move has on the economy. According to cryptocurrency experts and analysts, the Indian economy can immensely benefit from the inclusion of digital assets. Hence, this particular move makes sense for all involved stakeholders, including the government, regulators, exchanges, and customers.