TL;DR Breakdown
• The government of India is working to develop new crypto regulations in the new draft bill.
• According to recent reports, the Indian government will focus regulations depending on the end-use of cryptocurrencies.
The government of India would be working on establishing new rules that allow it to regulate cryptocurrencies. According to reports, the Indian authorities could establish virtual currencies in their new bill. In this bill, there are also plans to fragment cryptocurrencies depending on their use.
According to experts, cryptocurrencies will be treated as an asset and will be regulated as a commodity for any purpose. They can be included even for taxes, utility and investments payments, etc.
These same experts have indicated that cryptocurrencies can be classified depending on their use or their technology. India’s government must first be clear about cryptocurrencies before discussing the regulations and how they should work.
Indian government crypto regulations to focus on end-use
The local crypto market has welcomed the news of the Indian government regulations on cryptocurrencies. The crypto community in India has said that it is good news to regulate virtual currencies as basic assets and depending on their use.
Experts on the subject have added that the Indian authorities are not seeking settlements or payments through cryptocurrencies. The government will decide which cryptocurrencies will be traded in India.
Wazirx CEO Nischal Shetty has commented this step is very positive for the crypto market. He claims he is very happy that the Indian government is talking about digital asset regulations. Shetty says this plan will bring greater reliability and clarity to investors and bring more entrepreneurs to the industry.
According to Nischal Shetty, these crypto regulations will reduce the fear of entrepreneurs and investors who seek to invest in the local crypto market. With these measures, the Indian government will bring confidence and stability to all retail investors and traders.
This is the first time virtual currencies will be classified, depending on their technology. They clarify that the crypto regulations will focus on the end-use of cryptocurrencies.
Cryptocurrencies have a wide variety of use cases
Edul Patel, Mudrex CEO, has said that dividing virtual currencies depending on their use cases is good. He comments that if these measures are implemented correctly and effectively, it will be an incredible boost for all the digital assets recently recognized.
Patel has also said that the government recognizes that digital assets can have real and efficient use cases and are not just speculative tools with this approach.
Giottus CEO Vikram Subburaj has commented that virtual currencies can have many use cases, and having a piecemeal approach is better than having a one-size-fits-all approach to crypto regulations. Subburaj has also said that among the major cryptocurrencies, there are differences between the attractiveness of investors and the objective.
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