Indian Trade Commission proposes to classify cryptocurrencies as a special class of securities – Bits Media

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Indian Trade Commission (CII) proposes that the government classify all crypto assets as a separate class of securities.

Local media
mining farms ceased operations after inspections by government agencies, that the Indian Trade Commission has proposed introducing cryptocurrencies and other digital assets into a special class of securities. This will simplify the industry regulation process and improve user safety.

“We need to develop and implement a new set of rules, corresponding to the decentralized nature of cryptocurrencies. The regulator will deal with issues of transactions and storage, and not by issuing assets".

Indian Commerce Commission recommends creation of centralized exchanges and custodial providers. They will have to register with the Securities and Exchange Board of India (SEBI) and comply with existing anti-money laundering requirements.

“Exchanges must bear legal responsibility to clients for the safety of assets, in wallets. To accomplish this task they need a minimum capital and a guarantee fund. According to the law, they will be required to provide information to investors.".

If an updated Cryptocurrency Bill is passed in India, then uniform requirements for user verification will be introduced for all exchanges. In the future, this could facilitate the exchange of data between users and government agencies. According to the commission's proposal, digital assets should be treated as “fixed assets”. Besides, it was recommended to make tax reporting mandatory for companies, who disclose profits on tax returns.

The Indian government continues to develop a bill to regulate cryptocurrencies, Guidelines for investors were issued in November.