By Harry B - Crypto Speculator - 07-09-2021
Over the last year, we have seen the Indian government remain undecided on regulation surrounding cryptocurrency trading in India. There have been many threats in the country for banning the trading of crypto altogether. However, in recent days, cryptocurrency banning may no longer be the solution for India. Instead, the Indian government looked at cryptocurrency from another angle and considered the technology behind the crypto coins.
Cryptocurrency is currently being re-categorised, focusing on the technology used by the coin rather than the currency aspect. By looking at crypto assets in this way, markets and investors can recognise the asset type as a commodity. In fact, the asset class is on its way to being officially recognised as a commodity in a new draft bill; how this will affect cryptocurrency holders and the prices to buy crypto is yet to be known.
Even though it is good news that the Indian government have established crypto as a commodity instead of banning it entirely, cryptocurrency may fall under the same regulations. Potential rules for crypto commodities in India may include taxes and closer monitoring of how the assets are utilised. The main reason for the Indian government wanting to convert crypto to become a commodity asset is because it could resolve numerous previous issues.
One issue noted is that the country doesn't consider Bitcoin (BTC) as a legal tender because the government believes that only banks should be entitled to create currencies. Within the new draft, it stated that cryptocurrencies would be judged based on their technology. The draft bill says that the authorities will primarily focus on the end-use of all crypto assets, meaning that the technology behind the blockchain would help categorise each digitalised product.