The Indian government intends to ban the use of cryptocurrencies to make payments, however, it will allow them to be traded and held as assets like stocks, gold or bonds, as reported by The Economic Times citing sources familiar with the situation.
According to the publication, the authorities are finalizing a draft law on the regulation of cryptos. It is expected to be submitted for consideration by the country’s Cabinet of Ministers in the next 2-3 weeks.
The document will be presented to the Parliament at the winter session in February 2022.
The bill proposes a ban on active advertising of offers by crypto companies, including crypto exchanges and trading platforms.
The government is also working on the development of a crypto tax framework and it is expected that the planned law will solve this problem, the source said.
In early 2021, the media reported on a possible total ban on cryptocurrencies in the country. While this idea is supported by the Reserve Bank of India (RBI), the country’s central bank, the government prefers a kind of “middle” solution, The Economic Times reports.
The Cabinet of Ministers believes the steps taken in relation to cryptos should be “active, progressive and forward-looking,” since it is an evolving technology.