India’s Finance Minister has told Parliament that the central bank, the Reserve Bank of India (RBI), wants to ban cryptocurrencies. However, she said, “Any law to regulate or ban can only take effect after significant international cooperation.” She pointed out that.
Indian Finance Minister
on the prohibition and regulation of cryptography.
Indian Finance Minister Nirmala Sitharaman answered several questions on cryptocurrencies in the Lok Sabha, the lower house of India’s parliament, on Monday.
MP Thirumavalavan Thol recommended that the Reserve Bank of India (RBI) “formulate appropriate legislation to restrict the flow of cryptocurrencies in India?” and “Does the government have plans to legislate some law restricting the use of cryptocurrencies in India? ” asked the Finance Minister.
The Finance Minister replied.” In view of the concerns expressed by the RBI about the impact of cryptocurrencies on destabilizing the currency and financial stability of the country, the RBI has recommended the formulation of legislation in this area.” She elaborated.
RBI is of the view that cryptocurrencies should be banned.
However, Sitharaman noted that “cryptocurrencies are by definition borderless and require international cooperation to prevent regulatory arbitrage,” adding.
Therefore, any legislation for regulation or prohibition can only be effective after significant international cooperation on the assessment of risks and benefits and the evolution of common taxonomy and standards.
The Indian government is discussing crypto policy with the International Monetary Fund (IMF) and the World Bank.
Last week, Sitharaman called on G20 countries to bring cryptography into the “automatic exchange of information” framework that more than 100 countries already use. He also said the Financial Stability Board (FSB) is working on a “robust” regulatory framework for crypto assets and will report its recommendations to G20 finance ministers and central bank governors in October.
RBI Governor Shaktikanta Das recently said that “cryptocurrencies are clearly dangerous,” stressing that “anything that derives its value on the basis of a hoax, without any basis, is mere speculation under a sophisticated name.” V. Anantha Nageswaran, chief economic advisor to the Indian government, also warned in June about the dangers of crypto and the risks posed by its lack of regulation.
Meanwhile, cryptocurrency income is taxed at 30% in India, and a 1% withholding tax (TDS) on crypto transactions came into effect earlier this month.
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