Crypto Bill: Not a blanket ban, some crypto may be classified as financial assets

Crypto may not see a complete trading ban in India reports Bloomberg quoting unnamed sources. The global business news outlet states that the government is considering a proposal to treat cryptocurrencies as a financial asset while safeguarding small investors in the upcoming bill.

Citing unnamed officials familiar with the regulation, Bloomberg reports that the legislation may stipulate a minimum amount for investments to protect small investors, while banning their use as legal tender.

This would come as a huge relief not just for crypto investors but also the crypto exchanges that have long demanded that the digital tokens be classified as a security or a 'store of value' instead of a currency. The categorisation is critical, as a security the regulation purview would fall under the market regulator SEBI versus the oversight of the central bank who has been extremely critical of the crypto market.