A move to legalise digital currency will mark a stark shift in the country’s previously hostile attitude towards crypto
Bitcoin could soon become an asset class in India, marking a shift away from the country’s earlier hostile stance towards cryptocurrencies.
According to industry sources cited in a report from The New Indian Express, the government is expected to make the move soon while the Securities and Exchange Board of India (SEBI) will oversee regulations for the crypto sector following the change in classification for Bitcoin.
READ: Bitcoin adoption: Which countries could follow El Salvador?
The report also said the Indian crypto industry is in talks with the country’s finance ministry regarding the formulation of new rules for the sector, while a crypto regulation bill is expected to be presented to the Indian Parliament at its Monsoon session in July.
A move to relax restrictions on crypto in India would mark a step-change in the attitude of the country’s authorities towards digital currencies, with fears earlier this year that the government could ban crypto entirely and effectively shut the industry out of its large market.
India’s reported move to recognise Bitcoin as an asset class also follows moves by other nations to soften their approach to crypto, the most notable of which is El Salvador which last week approved a law to make Bitcoin legal tender in the Central American state.
The move has sparked speculation about which country could follow suit, with Paraguay noted as a viable candidate following news that one of its congressmen plans to introduce a bill next month to make the country more attractive to the crypto industry.
In early trading in London on Tuesday, Bitcoin was up 1.8% in the last 24 hours at US$40,245, giving it a market cap of US$754bn.