India is on the verge of revised cryptocurrency regulations, and it would bring about many new things for the country’s crypto firms. After former finance secretary Subhash Garg cleared the confusion about ‘private cryptocurrencies’, Indian crypto firms and investors could finally come out of their fear. However, things are not all sunshine and rainbows yet. Under a new directive, all Indian companies will have to submit a detailed report of their cryptocurrency exchanges to the Income Tax department. In the past, companies were not required to do anything of that sort. However, there are positives to this move as well, since crimes related to cryptocurrency are at an all-time high. If the government keeps a tab of how and where companies are spending their cryptocurrencies, it will help combat financial crimes efficiently.
For retail investors, things look more hopeful following Subhash Garg’s comments. If India does not ban cryptocurrencies (which it is unlikely to do), the market will grow tremendously and more people will start investing in crypto. It would increase because now they would have the government assurance. However, it can also lead to faulty decisions and interpretations. Many people might invest in crypto without fully understanding the market and its volatility.
The crypto bill is supposed to pass in the winter session of Parliament. As of now, there are no official comments on the bill. However, comments from insiders and experts suggest that a ban is highly unlikely.