Skip to main content

Indian Finance Minister: Crypto Ban, Regulation Effective Only With Significant International Collaboration

Indian Finance Minister: Crypto Ban or Regulation Only Effective With Significant International Collaboration

India’s finance minister has informed parliament that the central bank, the Reserve Bank of India (RBI), wants cryptocurrencies to be prohibited. However, she noted that “any legislation for regulation or for banning can be effective only after significant international collaboration.”

Indian Finance Minister on Crypto Ban and Regulation

Indian Finance Minister Nirmala Sitharaman answered some questions about cryptocurrency on Monday in Lok Sabha, the lower house of India’s parliament.

Parliament Member Thirumavalavan Thol asked the finance minister whether the Reserve Bank of India (RBI) “has recommended for framing suitable legislation to restrict the flow of cryptocurrency in India” and whether “the government has any plan to legislate any law restricting the use of cryptocurrency in India.”

The finance minister replied: “In view of the concerns expressed by RBI on the destabilizing effect of cryptocurrencies on the monetary and fiscal stability of a country, RBI has recommended for framing of legislation on this sector.” She elaborated:

RBI is of the view that cryptocurrencies should be prohibited.

However, Sitharaman noted that “Cryptocurrencies are by definition borderless and require international collaboration to prevent regulatory arbitrage,” adding:

Therefore any legislation for regulation or for banning can be effective only after significant international collaboration on evaluation of the risks and benefits and evolution of common taxonomy and standards.

The Indian government has been consulting with the International Monetary Fund (IMF) and the World Bank on crypto policies.

Last week, Sitharaman called on the G20 countries to bring crypto within the “Automatic Exchange of Information” framework, which over 100 countries are already using. The Financial Stability Board (FSB) also said it is working on a “robust” regulatory framework for crypto assets and will report its recommendations to the G20 finance ministers and central bank governors in October.

RBI Governor Shaktikanta Das recently said that “Cryptocurrencies are a clear danger,” emphasizing that “Anything that derives value based on make-believe, without any underlying, is just speculation under a sophisticated name.” In addition, the Indian government’s chief economic adviser, V. Anantha Nageswaran, warned in June about the danger of crypto and the risks posed by its lack of regulation.

Meanwhile, cryptocurrency income is taxed at 30% in India, and a 1% tax deducted at source (TDS) on crypto transactions went into effect earlier this month.

What do you think about the comments by the Indian finance minister? Let us know in the comments section below.



from Bitcoin News https://ift.tt/fGZQYM4
Labels:

Comments

Post a Comment

Popular posts from this blog

Deep Web Roundup: Dream Adds Monero and Bitcoin Tumbler “Chip Mixer” Launches

The darknet has been quiet of late, which is the way it’s meant to be. No news means no mega busts, honeypots, or mass market shutdowns. Even when it’s out of the spotlight though, the deep web is quietly making news, whether trialling the latest privacy coins or the newest coin mixers that promise to restore a little of the privacy that’s being stripped away from bitcoin users on a daily basis. Also read: U.S. Agency ICE Conducts Investigations That Exploit Blockchain Activity The Battle for Privacy Heats Up Privacy is all relative, but of late there’s been relatively little privacy to be enjoyed by bitcoin users. Blockchain monitoring software is becoming more sophisticated and more common, with U.S. law enforcement agencies using it to profile and hunt down deep web users. Chip Mixer is a relatively new bitcoin tumbler that’s designed to restore some of that privacy. Available on both the clearnet and darknet, the service uses a variety of techniques to obfuscate blockchain m...
10 comments
Read more

International Crypto Exchange Luno Adds Bitcoin Cash Trading

Luno exchange has added bitcoin cash trading to the platform following feedback from its client base. BCH is now only the third cryptocurrency available for trading on the exchange, in addition to BTC and ETH , but more options could be on the way once Luno determines that they are credible enough. Also Read: Bitflyer Adds Bitcoin Cash Trading Across Europe and the US Luno Adds Bitcoin Cash Trading Luno, the London-headquartered company formerly known as Bitx, recently announced that bitcoin cash was made available on its cryptocurrency exchange. Starting from Monday, September 23, customers at Luno are now able to store, buy and sell BCH on the platform. The reason given for adding BCH to the exchange is feedback from users in developing markets that convinced Luno to expand their offering from previously just BTC and ETH . Marcus Swanepoel, CEO of Luno, said , “We are in a new and exciting financial era. Developing economies are leading the large-scale adoption and appli...
Post a Comment
Read more

Ombudsman Receives Complaints About Crypto Investments in Spain

The Spanish ombudsman has been receiving complaints about cryptocurrency and how some Spanish citizens investing in these vehicles have lost everything. In his annual report, Angel Gabilondo recognized the rise of cryptocurrencies as a new problem due to the little or no regulation crypto sees in the country. In the same way, the EU has also warned about these assets recently. Spanish Ombudsman Gives His Take on Crypto Angel Gabilondo, the Spanish ombudsman, has given his take regarding cryptocurrencies and the effects they have on citizens investing in some of these projects. Gabilondo said in his yearly report that cryptocurrencies have become “a new problem” during the year examined, with many people having lost all of their funds invested. The report states : Cryptocurrency exchange companies or platforms are not regulated in the legal system, are not subject to any public supervision system, nor do they benefit from deposit guarantee systems. The affected users that sought...
Post a Comment
Read more