Following a series of countries focused on regulating crypto-assets, India joins the list now to regulate cryptocurrencies based on use-cases. According to the reports, the country is planning to categorize cryptocurrencies based on their use-cases.
The Economic Times reports state that for all reasons it includes the tax on use cases, cryptocurrencies are regarded as an asset. The report also mentioned that the government will choose which cryptocurrency to operate in the country.
Significantly, the publication has cities 3 sources where one of the sources states:
“Crypto-assets can be classified according to the technology they employ or according to their intended use. So, before discussing how the regulations should be implemented, the government must define what it means by cryptocurrencies. The government has no plans to allow virtual currency payments and settlements.”
Moreover, the other source indicates that the government will focus on the asset’s end-use for regulatory purposes. Because this would be the first attempt where cryptocurrencies are classified according to the technology they employ.
Crypto Community Welcomes Positivity
In India, the announcement of crypto-monetary regulations seems to be well-received by the crypto community. Nischal Shetty, the CEO of Wazirx, a crypto exchange platform expressed his positive thoughts towards the decision of the Indian government.
He states that this is a huge step in bringing clarity for the crypto industry and investors of this sector. Regulation on cryptocurrencies will help investors and users to decide without fear of the crypto industry. On the other hand, Edul Patel, CEO of Mudrex also responds that classifying cryptocurrencies on the basis of use-cases is a great initiative. But if it is implemented efficiently, then it would be a significant boost for new entries in the crypto industry.
However, the growing number of investors in India is rising for the crypto space. A blockchain analysis platform, Chainanalysis has estimated that India’s investment in cryptocurrencies has flowed from $923 million to $6.6 billion in a year. Keeping this as a case, the government has taken proper steps toward crypto regulations.
