What position will India take against cryptocurrencies? The date for the editing is clear!
India, one of the most populated countries in the world, is home to a large number of cryptocurrency investors. Therefore, the crypto money regulations that will be implemented in the country will affect the entire ecosystem. The crypto regulation, which was expected to be on the agenda during the monsoon sessions, was delayed for the second time. Judging by the statements received today, the issue will become clear in a few months.
India and Cryptocurrencies
Officials from the Ministry of Finance of India said that a potential law on cryptocurrencies will appear when the government presents the Union Budget of India in February. The Indian government may be trying to establish a legal framework for crypto-based digital currencies as “assets” as early as February.
According to a report from Indian news outlet Business Today, the country’s Ministry of Finance officials will consider cryptocurrencies as commodities of the potential legal framework. If this law comes to fruition, all previous prohibition statements will be shelved and cryptocurrencies embraced.
On February 1, the government of India will present the Union Budget. The Reserve Bank of India will also complete its work by this date and announce the regulation simultaneously. It is known that the Indian Tax Office is also working on taxation of crypto earnings obtained through trading and exchanges. If taxes are to come, it seems possible that the definition of “commodity” will be legalized.
With a population of roughly 1.4 billion, India choosing to create a concrete legal framework for cryptocurrencies will generate serious benefits for the ecosystem.
Decision of the Delhi High Court
Delhi High Court has made an important decision for cryptocurrency exchanges. The court that decided to relaunch Unified Payment Interface (UPI) services for cryptocurrency exchanges instills hope in the ecosystem.
“SBI has blocked and restricted users and merchants from using the UPI deposit option on crypto exchanges, leaving users no choice but to use other payment deposit options that take more time to complete and extra fees such as convenience fees.”
UPI payments of cryptocurrency exchanges were suspended and companies were making troublesome use of banking services. Banks will no longer be able to cause difficulties for crypto investors and crypto exchanges. SBI’s decision to ban UPI services on Indian crypto exchange giant WazirX is thus overturned.