Change of Heart? India Reportedly Considers Classifying Bitcoin as an Asset Class
10 Jun, 2021•2 min read•Bitcoin
After years of controversial history with the digital asset industry, India could be changing its mind again and moving from banning cryptocurrencies to classifying them as an asset class.
By citing “top sources tracking the industry,” The New Indian Express reported the latest development earlier on June 10th. The paper reads that the government has decided to skip its plans to ban cryptocurrencies. Instead, it will “most likely” classify Bitcoin and the rest of the market as an asset class very soon. If it does so, the digital asset space will work under the regulatory scope of the local watchdog – the Securities and Exchange Board of India (SEBI). The world’s second most populated country has displayed a highly controversial approach towards the industry for years. Back in 2018, the country’s central bank banned all organizations working with it from operating with anyone from the crypto space. The nation’s Supreme Court reversed the decision in 2020. Nevertheless, the RBI has frequently warned investors of the potential risks of investing in virtual assets. Additionally, some reports claimed that the government was actually looking into implementing a flat-out ban on BTC, just like its northern neighbor – China. However, another country could have played a more significant role in India’s reported change of heart – El Salvador. As it became known after the weekend, the small South American country recognized bitcoin as a legal tender within its borders.