India Might Not Ban Cryptocurrencies, Instead Treating Them As Commodities

in #india6 years ago

India's stance towards cryptocurrencies hasn't been fixed yet. After already banning crypto-fiat transactions via Commercial banks, India is now planning to regulate cryptocurrencies. 

But before regulating them, it has to be decided first that how will cryptocurrencies be treated?

As per some anonymous official sources, Indian government might treat crypto as Commodities. The government is not likely to ban cryptocurrencies in India but treat them as commodities, a Senior Official with knowledge of panel's decision appointed by the government to study cryptocurrencies.

The Indian government's main concern is to effectively regulate the trade and identify the 'Source of Income' being invested in cryptocurrencies. 

Official Committee is mostly concerned with the tracking of Crypto Investors and their funds to fight money laundering and illicit activities. 

As per the source, the following statement has been delivered by a government official:

“Trade is not a criminal offence. Most of us trade in various asset classes in the stock market. So how is this [cryptocurrency trading] any different? What has to be in place is a mechanism to be sure that the money used is not illegal money, and to track its source is the most important thing.”

While the former RBI's deputy governor said that ''Treating cryptocurrencies as Commodities will help investors to know the risk associated to invest in them''.

“If these are used to settle transactions, then it acquires the nature of currency. So that is one thing that one needs to be wary of. But if people want to invest in a commodity then that is different, because then we can assume that they are aware of the risks involved.”

Now, let's see what Government will officially announce.

Thanks for reading ...!!

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