India Unlikely to Take a Tough Stance on Cryptocurrencies

India is considering a middle path on cryptocurrencies, as it finalizes legislation on the virtual asset to be introduced in the upcoming winter session of Parliament.

The hard-liner stance for an outright ban of crypts is not being found feasible in view of large investments in such instruments in such instruments by Indians, and these unregulated virtual currencies are also unlikely to be allowed as a legal tender, said a government source.

“A balance has to be found,” the person said, adding that a final call on the contours of the law will be taken shortly. “A middle path that balances the concerns of all stakeholders is more likely.”

A detailed presentation on the pros and cons, regulation adopted by other countries, investments made by Indians in digital currencies and RBI’s views in the issue was made before policymakers, including from the finance ministry, recently. Another presentation is likely shortly to finalize the taxation aspects emerging from trading of digital currencies, the source said, adding that after legal vetting it would go to the Cabinet.   

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