Citing various top sources from the Indian crypto industry, The New Indian Express has reported that El Salvador's historic embracing of Bitcoin has led the government to consider qualifying Bitcoin as an asset class in the country.
Indian regulator SEBI to oversee crypto regulation
After the president of El Salvador announced that Bitcoin has been adopted as a legal tender in the country, the Securities and Exchange Board of India (SEBI) intends to reconsider its current cryptocurrency ban and oversee crypto regulation.
Top crypto industry reps in the country are also negotiating with the local finance ministry about the new set of regulatory rules, and the ministry is looking into the issue now.
The new bill regarding crypto regulation is likely to hit Parliament for discussion during monsoon season, sources have shared.
Just recently, the Reserve Bank of India (RBI) has again prohibited lenders from working with companies whose business is related to virtual currencies—crypto exchanges—due to the high volatility of cryptocurrencies.
However, El Salvador legalizing Bitcoin as a means of payment and other Latin American countries looking to follow suit, such as Mexico, have made Indian regulators consider changing their minds.
Major concerns about crypto remain
According to the head of RBI, Shakthikanta Das, major concerns regarding cryptocurrencies remain.
However, the new committee working on the new crypto regulation law intends to "look into the overall scenario and take the best step forward."
Besides, recently, the chairman of Infosys, an IT and consulting giant in India, Nandan Nilekani, has urged India to legalize crypto not as a legal tender (since cryptos are too volatile) but as an asset class, a commodity.