Govt May Ask SEBI To Regulate Private Cryptocurrencies, Likely To Classify Cryptos As Financial Assets: Report

The Securities and Exchanges Board of India (SEBI) may be asked by the Central government to supervise cryptocurrencies and also regulate the affairs of exchanges dealing with them, reports Financial Express.

A time period of three months will be provided to investors to declare their crypto holdings and adhere to the new set of rules and regulations.

However, the a final decision on the matter will be taken after the union cabinet considers the draft of the ‘Cryptocurrency and Regulation of Official Digital Currency Bill 2021’.

As per the new bill, ‘crypto-assets’ will replace the term ‘cryptocurrencies’.

Industry sources quoted in the report by the Financial Express claimed that the government might take a more nuanced stance on the issue and will refrain from imposing an outright ban on private cryptocurrencies.

The sources added that the government may prohibit the use of cryptos as legal tender and rather classify them as ‘financial assets’.

The concerned bill also provides for a framework to launch the official digital currency by the Reserve Bank of India (RBI).

Meanwhile, the report also added that the Centre is also likely to amend the income tax laws to bring cryptocurrencies under the tax net.