The Confederation of Indian Industries (CII) proposed on Thursday that the government classify crypto tokens as ‘special-class securities.’
The cryptocurrency market is booming, and its value is reaching high. Nowadays, anybody with a computer and internet connection can start trading cryptocurrencies on the internet. Blockchain technology has made it possible for anybody to start their cryptocurrency and prosper.
Many people are looking at cryptocurrencies as an investment opportunity. Some even think that the technology behind cryptocurrency might become a new means of payment in the future, replacing credits cards and cash money. However, many countries still don’t recognize cryptocurrencies as legal tender because they are not backed by any government or central bank (i.e., they are decentralized).
On Thursday, the Confederation of Indian Industries (CII) requested that crypto tokens be classified as special-class securities’ by the government.
The proposal comes as the government prepares to present the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, in Parliament’s Winter Session. The bill aims to outlaw all private cryptocurrencies in India and provide a framework for the Reserve Bank of India to produce an official digital currency.
Additionally, it said that the government should consider establishing a standing advisory board comprised of members from regulators, legislators, and other stakeholders who can provide guidance on the new asset class’s issues.
CII argued that crypto-assets should be exempt from current securities rules, recommending that new regulations be created in light of their jurisdiction-free and decentralized nature.
The CII calls for a classification of cryptocurrency to be treated as a special class of securities. The special treatment would help in better understanding the nature and purpose of cryptocurrency, and this would also help in providing regulatory clarity and certainty for market participants.
Read Also: Australia Presents New Crypto-Related Legislation
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.
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