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The Indian Trade Commission (CII) proposes that the government classify all cryptoassets as a separate class of securities.
Local media reported that the Indian Trade Commission has proposed to move cryptocurrencies and other digital assets into a special class of securities. This will simplify the industry regulation process and improve user safety.
“A new set of rules needs to be developed and implemented to match the decentralized nature of cryptocurrencies. The regulator will deal with the issues of transactions and storage, and not the release of assets. “
The Indian Trade Commission recommends the creation of centralized exchanges and custodian providers. They will have to register with the Securities and Exchange Board of India (SEBI) and follow existing anti-money laundering requirements.
“Exchanges should be legally responsible to clients for the safety of assets in their wallets. To accomplish this task, they need a minimum capital and a guarantee fund. According to the legislation, they will have to provide information to investors ”.
If an updated cryptocurrency bill is passed in India, then uniform user verification requirements will be introduced for all exchanges. In the long term, this can facilitate the exchange of data between users and government agencies. According to the commission’s proposal, digital assets should be treated as “fixed assets”. In addition, it was recommended to make tax reporting mandatory for companies that disclose information about profits in tax returns.
The Indian government continues to develop a draft law to regulate cryptocurrencies, with recommendations for investors released in November.
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