Will cryptocurrency get ‘currency’ as an asset class as it is out of payment option?


New Delhi: In 2016, when Hiten Malviya (29) a Bitcoin For the first time, the value of the virtual currency was less than $ 1,000. After an initial investment of Rs 40,000, Malviya became ‘Crypto With the value of Bitcoin reaching $ 20,000 at the end of 2017, millionaires in one year ‘.
In 2018, Malviya, however, lost about 80% of its networth as the value of Bitcoin plummeted to 3,000. He could not even get his property because of it RBI Banning of crypto trading facility by banks. “It was a difficult time not only financially but also socially. Crypto was considered illegal, “said Malviya.
Crypto is still in the legal gray zone but it has become a household phenomenon amidst the epidemic as the prospect of multi-beggar returns has attracted Indians to highly volatile digital tokens. According to Reuters, about 15 million Indians have crypto assets. The growing popularity of crypto caught the attention of policymakers earlier this year. Last month, the government said it would introduce a bill seeking a ban on “private cryptocurrency” while allowing for “exceptions to promote underlying tech”. Lok SabhaCurrent session.

However, the government’s secret announcement frightened Indian investors and led to massive sales. Nishkal Shetty, CEO of Crypto Exchange, WazirX“The Indian market has been trading at 15-20% discount over the global market for some time now,” he said. The fact that the bill is similar to January has created fear among investors, “he said.
However, the month-long winter session of Parliament is set to end on Thursday and there are still no signs of a bill. To allay investors’ concerns, the RBI told its board last week that a full crypto ban was needed because partial restrictions would not work.
The local crypto industry, which includes unicorn startups, is in talks with the government and FM. Nirmala SitharamanA statement in Parliament in late November – that the government has no plans to call Bitcoin a “currency” – was in line with industry demand. “Crypto should be classified as an asset class. It is similarly regulated in many other countries, and most of the cases of use of crypto are investments and not payments, “said Ashish Singh, co-chairman of industry body BACC.
Crypto Exchange BuyUcoinCEO Shivam Thakral also said that “the industry is advocating against recognizing crypto as a legal tender”. The government and the RBI have trouble accepting privately issued currency because it is not backed by guarantees or commodities. The bill will be closely monitored as the government’s definition of ‘private’ crypto is not clear.
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