Cryptocurrency Govt may permit crypto as an asset, not as currency: Report
New Delhi/IBNS: The government is currently in the process of framing laws on cryptocurrency after concerns were raised over unregulated crypto markets and how they can be prevented from becoming avenues for money laundering and terror financing. The new laws may not allow the use of cryptocurrencies to settle transactions or make payments but may allow people to hold them as assets like shares, gold or bonds, ET reported citing sources.
The government may bar crypto companies, including exchanges and platforms, from actively trying to attract new investors.
With the new laws, it is likely that the government may regulation of crypto-asset trading while barring the use of virtual currencies for payments and transactions, the ET report said citing people with the knowledge of the matter.
"Active solicitation would not be permitted... Details of the bill are being finalised," a government source was uoted as saying by ET.
Securities and Exchange Board of India (SEBI) could be designated as the regulator, but nothing has been finalised yet, the report further mentioned.
The government is also working on the taxation aspect, the ET report said, adding that the new legislation will take care of this.
It said that the government is not looking at a complete ban but taking the middle path on cryptocurrencies.
The overall view within the government is that the steps taken should be proactive, "progressive and forward-looking" as it was evolving technology, the ET report said.
After Prime Minister's meeting on the way forward for cryptocurrencies, the parliamentary standing committee on finance met crypto industry representatives on Monday.
The committee also expressed views favouring regulation rather than a complete ban.
Reserve Bank of India (RBI) Governor Shaktikanta Das has repeatedly expressed concern over cryptocurrencies from a point of view of the macroeconomy and financial stability.
Yesterday, Das said RBI has serious concerns over cryptocurrency as "far deeper" issues are involved.
"When the central bank says we have serious concerns after due internal deliberations, there are far deeper issues involved," said Das at the SBI Banking and Economics Conclave on November 16, reported Money Control.
He noted that deeper discussions on cryptocurrencies were necessary and he was yet to see well-informed debate on key concerns, some of which had been raised by the RBI.
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