The Indian government may submit a bill to regulate crypto assets (virtual currency) during the winter parliament session, local news media The Economic Times reported Wednesday.
According to sources, the Indian government is banning the use of cryptocurrencies as “currencies”, and would instead class them under a complex asset class category. It was revealed that the proposed bill would focus on investor protection, a motive highlighted by Prime Minister Narendra Modi at a recent crypto conference.
In addition, the new proposals would likely set restrictions on actively soliciting people from crypto exchanges. The move would likely result in restrictions on ads that encourage investment in cryptocurrencies without warning about investment risk.
A proposal to designate The Securities Exchange Board of India (SEBI) as the regulatory authority for crypto assets also emerged, but a final decision has not been made.
The Indian government also plans to impose a 1% GST, sources familiar with the matter told Business Standard. If introduced, exchanges are likely to collect that amount from investors who use their products and services.