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According to media reports, a Finance Ministry ( Government of India) panel has ordered a study on cryptocurrencies, which may suggest that the government would treat them as commodities. A senior government official with knowledge of the panel’s discussion told that they doubt the government aims to ban cryptocurrencies.
The source said that regulator's main concern is how to effectively regulate the trade and identify “where the money is coming from.” They added that, “allowing it as a commodity may let us better regulate trade and so that is being looked at.”
R Gandhi, former Reserve Bank of India (RBI) deputy governor, opined that treating cryptocurrencies as commodities would clearly demonstrate to investors that crypto is not real currency:
So, if India regulates crypto, that will be good news and may possible reason for growth in price. So just keep eyes on 20th July Hearing fixed at Supreme Court.“If these are used to settle transactions, then it acquires the nature of currency. So that is one thing that one needs to be wary of. But if people want to invest in a commodity then that is different, because then we can assume that they are aware of the risks involved.”
Source : cointelegraph.com