Lawmakers in India are reportedly looking to classify Bitcoin as an ‘asset’ regulated by the Securities and Exchange Board of India (SEBI), as per a report on local daily the New Indian Express this morning.
Regulation for Bitcoin incoming?
SEBI is expected to oversee Bitcoin activity in India and classify it as a proper, regulated ‘asset.’ Bitcoin has, so far, existed in a legal gray area in the country and cannot be used as currency locally. However, investor profits are treated as ‘capital taxes’ and it is taxed accordingly.
The move comes shortly on the back of central American country El Salvador legalizing Bitcoin as ‘legal tender’ alongside the US dollar—meaning the decade-old asset can be exchanged for any goods and services similar to how dollars were exchanged earlier.
As per sources cited in the report, a so-called ‘Cryptocurrency Regulation’ bill is likely to be tabled in Parliament during the Monsoon session.
Industry insiders support those sources: “We can definitely say that the new committee which is working on cryptocurrencies is very optimistic on cryptocurrency regulation and legislation,” said Ketan Surana, Director and chief financial officer at crypto exchange Coinsbit and member at the Internet and Mobile Association of India.
He added, “A new draft proposal will soon be in the Cabinet, which will look into the overall scenario and take the best step forward. We are very hopeful that the government will embrace cryptocurrencies and blockchain technologies.”
The report comes weeks after Shakthikanta Das, governor of the Reserve Bank of India, the country’s central bank, said that the government was exploring regulations to integrate cryptocurrencies in the broader economy and take steps to mitigate potential risks.
He, however, said at a separate appearance that “major concerns” remained and that the government was apprised of the negative aspects of cryptocurrencies.
Still, a possible regulation would be a net positive for what is one of the world’s most populous, yet economically challenged countries.
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“Bitcoin maximalists? They can’t stop innovation,” says Mati Greenspan
Cointelegraph By Marco Castrovilli
In an exclusive interview with Cointelegraph during Bitcoin 2021 in Miami, Greenspan criticized a segment of Bitcoin (BTC) maximalists for being “small-minded and insecure,” pointing out that they don’t have control over the main cryptocurrency.
“They cannot stop any kind of innovation from happening. So let them yap, it doesn’t bother me,” said Mati Greenspan, founder and CEO of Quantum Economics, about Bitcoin maximalists.
Greenspan‘s statements came a few days after a number of Bitcoin hardliners attacked him on Twitter for calling the Bitcoin conference in Miami “a crypto conference.”
Greenspan’s inclusive view on crypto is also reflected in his diversified investment portfolio. When asked about it, Greenspan pointed out that Dogecoin (DOGE) is his top holding on eToro. “Why not?” he said. “It’s funny!”
Check out the full interview on our YouTube channel, and don’t forget to subscribe!
Over 2 million adults in UK now hold crypto, FCA survey finds
Cointelegraph By Helen Partz
A new study by the United Kingdom’s Financial Conduct Authority has indicated a significant increase in cryptocurrency ownership in the country.
On Thursday, the FCA published the results of a consumer survey which found that 2.3 million adults in the U.K. now hold crypto assets, up from 1.9 million last year. Alongside the increasing number of crypto investors, the study also identified a surge in ownership volumes, with median holdings rising to 300 British pounds ($420) from 260 pounds ($370) in 2020.
The rising popularity of holding cryptocurrency comes in line with an uptick in the awareness level as 78% of adults said they have heard of crypto, up from 73% last year.
Despite the rising awareness and ownership of crypto, the FCA study has flagged a notable decline in understanding of cryptocurrencies, suggesting that some people who have heard of crypto may not fully understand it.
According to the report, only 71% of respondents correctly identified the definition of cryptocurrency from a list of statements, down 4% from 2020. “This suggests there may be a risk of consumers engaging with cryptocurrency without a clear understanding of it,” the FCA noted.
Related: Crypto and ‘meme stocks’ shunned by 90% of UK financial advisers
Sheldon Mills, the FCA’s executive director of consumers and competition, said that some U.K. investors have benefitted from the bull market this year. “However it is important for customers to understand that because these products are largely unregulated that if something goes wrong they are unlikely to have access to the FSCS or the Financial Ombudsman Service,” he added.
The FCA study also said that U.K. consumers significantly favor Bitcoin (BTC) over other cryptocurrencies, with 82% of respondents recognizing BTC. Among those who recognized at least one cryptocurrency, 70% recognized only Bitcoin, up 15% from 2020, the study said. “It seems likely many adults who have now heard of cryptocurrency are only acquainted with Bitcoin,” the FCA stated.
SEC opens to comments on whether to approve VanEck Bitcoin ETF
Cointelegraph By Turner Wright
The U.S. Securities and Exchange Commission has issued an order allowing the public to comment on the proposed rule change surrounding the Bitcoin exchange-traded fund from asset manager VanEck.
According to a Wednesday filing from the SEC, the regulatory body has not yet reached a decision on whether to approve or disapprove of VanEck’s Bitcoin exchange-traded fund, or ETF, but “seeks and encourages interested persons to provide comments” on the proposal. Specifically, the commission is asking the public to consider whether they believe the Bitcoin ETF would be susceptible to manipulation and designed to prevent fraudulent and manipulative acts and practices.
The SEC also asked people to weigh in on “the suitability of Bitcoin as an underlying asset for an exchange-traded product,” and the liquidity and transparency of the Bitcoin (BTC) market. Existing rules require that national securities exchanges are aimed to “protect investors and the public interest.”
Anyone interested in commenting on the proposed Bitcoin ETF will have until 21 days after the order is published in the Federal Register, and 35 days after publication in the same register for rebuttals. Members of public can submit comments through the SEC website, via email, or snail mail.
Related: SEC pushes decision on VanEck Bitcoin ETF until June
VanEck submitted the paperwork to apply for a Bitcoin ETF with the SEC in March following the asset manager withdrawing a similar application it had filed in January in partnership with blockchain startup SolidX. The commission has already extended the deliberation window once, from May 3 to June 17.
The SEC has the ability to extend the deadline in 45-, 45-, 90- and 60-day increments — up to 240 days — before delivering a final decision. However, under Section 19(b)(2)(B) of the Securities Exchange Act of 1934, the commission also has the right “to determine whether the proposed rule change should be disapproved” prior to any deadline, as is the case in the request for public comment.
No Bitcoin ETF has been approved by regulators in the United States. Given the SEC’s continued delays in the case of VanEck’s, Valkyrie Digital Assets’ and Fidelity Investments’ proposed BTC exchange-traded funds, many do not expect an approval soon. However, Canadian officials have given the green light for many crypto ETFs this year, including offerings from investment fund manager 3iQ, Purpose Investments, Evolve Funds Group and CI Global Asset Management.
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