Cryptos to be allowed as assets in India, could be banned as currencies for transactions: Report | Digit

In what will come as welcome news for crypto enthusiasts in India, the latest reports suggest the Modi government is set to take a progressive stance on the future of cryptocurrencies in the country. As per a report by The Economic Times, India will likely bar the use of cryptocurrencies for transactions or making payments, however, it will allow them to be held as assets like gold. 

As per the report, the government hopes that this approach would serve as a middle ground, that will help it avoid implementing a complete ban of cryptocurrencies in India. The report also adds that this would not mean that the government will actively promote the trading of cryptos as it does not want crypto exchanges to actively attract new investors. This is despite the government wanting to take “progressive and forward-looking” steps towards cryptocurrencies and underlying technologies. 

Could crypto make its way to India legally?

If this indeed ends up being the case, there will be a lot of cheer within the crypto community in the country as key players have already made several attempts to classify cryptos as assets rather than currencies to avoid a ban. 

This information comes after Prime Minister Narendra Modi recently chaired a high-level meeting on Saturday to discuss the future of cryptocurrencies in India. Reports suggest during the meeting, several issues including the fear of how unregulated markets could be used as fronts for “money laundering and terror financing” were discussed. 

The meeting between the government and key stakeholders from the industry also involved conversations around non-transparent and misleading ads that over-promise. According to reports, the government has signalled its intent to stop such ads and introduce strong regulatory steps to govern them.