A representative of the Indian government has asserted that there is no legal prohibition of cryptocurrencies in India, as long as the appropriate legal processes are completed. However, the Reserve Bank of India (RBI) has stated that digital assets have no intrinsic value.
Indian Government Representative’s View On Crypto
Rajeev Chandrasekhar, Indian Minister for Electronics and Information Technology and Minister for Skills Development and Entrepreneurship, spoke on cryptocurrency at an event in Bangalore on Thursday. Chandrasekhar is also a member of the Rajya Sabha, the upper house of India’s parliament.
Chandrasekhar commented that there is currently nothing prohibiting cryptocurrency in India, as long as the legal process is followed. According to Reuters, he said:
At present, there is no law against cryptocurrency, on condition that the right legal procedures are adhered to.
The Indian government has yet to create a regulatory framework to oversee cryptocurrencies. In December of last year, the government informed parliament that it will not be passing crypto-related legislation. They explained that such regulation “can only be effective with significant international collaboration.” Indian Finance Minister Nirmala Sitharaman has recently stated that the government is discussing crypto regulations with other G20 members.
Nevertheless, cryptocurrency income is already subject to a 30% tax in India, and a 1% source tax (TDS) is applied to crypto transactions. The government also announced this month that it will be launching a campaign to spread awareness about digital assets.
Meanwhile, India’s central bank, the RBI, has recommended that cryptocurrencies such as Bitcoin and Ethereum should be banned. RBI governor Shaktikanta Das declared last week that “cryptocurrencies have no intrinsic value,” and warned that they “will undermine the authority of the RBI and lead to dollarization of the economy.” He even claimed that digital assets could be responsible for the next financial crisis, were they not prohibited.
What do you think of Rajeev Chandrasekhar’s statement? Let us know in the comments below.
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