The situation with cryptocurrencies is unstable. Every year crypto enthusiasts are announcing their best perspectives about the digital world and governmental officials are implementing regulations. It’s said that now there are 15-20 million cryptocurrency holders in India, its total volume in the hands of the population is about $ 5.39 billion.
The authorities are concerned about the uncontrolled cryptocurrency markets that can be used to launder money and finance terrorists. In this article, we’ll reveal the latest news concerning the Indian relation to cryptocurrencies and the expert’s estimation of the current year.
What legal experts believe is that it’s too late to ban cryptocurrency in India. The government needs to develop comprehensive regulation of crypto assets and the one should vary from developed countries. The Reserve Bank of India highlighted that cryptocurrency should be completely banned.
The regulator was backed by a branch of the nationalist organization Rashtriya Swayamsevak Sangh. It’s an Indian right-wing paramilitary volunteer organization. The RSS is the progenitor and leader of a large body of organizations called the Sangh Parivar, which have presence in all facets of the Indian society. Rashtriya Swayamsevak Sangh called for a complete ban on cryptocurrencies. They decline the possibility of a partial work. At the same time, the organization suggest allowing traders to sell cryptocurrencies on the condition of providing tax reporting.
Indian legal experts shared their professional assessment regarding this issue though. It’s reported that it’s too late to ban cryptocurrency. L. Badri Narayanan, head of Lakshmikumaran & Sridharan Attorneys, said the Indian government views cryptocurrencies as investment instruments. He believes that digital currencies are likely to be considered as assets and subject to income tax.
Legal experts note that comprehensive regulation of this sphere is needed in the country. This will not only ensure the safety of investors, but also prevent the uncontrolled growth of cryptocurrency, which could threaten India’s foreign exchange reserves and undermine its economy. When considered the crypto approach in general, India’s viewing cryptocurrency should not be compared to developed countries.
Regarding international crypto transfers from India, Narayanan explained the following, “You cannot take money out of India without permission. We are a foreign exchange-regulated market and that means we cannot take certain decisions like developed countries that have a free market. “
Foreign Exchange Management Act is a law to consolidate and amend the law relating to foreign exchange in India. According to the act, the cross-border movement of goods and services is classified as import/export. Recently, International Monetary Fund chief economist Gita Gopinath commented on banning cryptocurrencies in India, “There are challenges to banning it whether you can end up with truly banning crypto because many exchanges are offshore, and they are not subject to regulations of a particular country”.
The Minister of State for External Affairs and Culture of India Meenakshi Lekhi said earlier that cryptocurrency should be banned if they are used to damage the country’s sovereignty and integrity. What is going to happen with crypto regulations in India – crypto enthusiast will be aware of it later. India has postponed the adoption of the law on the regulation of cryptocurrencies to 2022.