Cryptocurrency Bill: Ban Off The Table, SEBI To Regulate Exchanges, Say Media Reports

The much-awaited cryptocurrency bill may put to rest the fears of a total ban, according to media reports.

The government would move to classify such tokens as "cryptoassets" to avoid any overlap with the Reserve Bank of India-issued digital currency, which is also in the works, NDTV and Mint reported citing a cabinet note on the bill and people aware of the matter.

The bill would bring all crypto exchanges operating in India within the purview of the Securities and Exchange Board of India, according to the reports. That, Mint reported, would help curb scams around cryptocurrencies.

Emailed queries to the Finance Ministry spokesperson didn't elicit a response.

India is considering to distinguish private cryptocurrencies from central bank digital tokens, Minister of State for Finance Pankaj Chaudhary had indicated while responding to queries during the winter session of parliament. The government has received a proposal from the RBI to enhance the scope of definition of "bank note" to include currency in digital form, he said.

The crypto bill, set to be tabled during the session, will affect India's more than 1.5 crore crypto buyers, who, according to think tank ORF, have invested Rs 660 crore in such holdings.