The Reserve Bank of India has long condemned the use of cryptocurrencies, but despite the Supreme Court’s rejection of the 2018 bill last year, the Indian government’s position on cryptocurrencies remains highly uncertain.

On the other hand, high-ranking sources who follow the government’s position say that it has moved away from the idea of ​​a comprehensive ban. On the other hand, several banks have started to block crypto-related companies from accessing their services, including ICICI Bank, Paytm Payments, Yes Bank and most recently IDFC First Bank.

Reserve Bank of India (RBI) concept. As the body responsible for ensuring that the country can withstand economic shocks, he has repeatedly pointed out the dangers of using cryptocurrencies. Some banks continue to cite the 2018 circular as the reason for the crypto account freeze, despite it being canceled by the Reserve Bank of India earlier this year.

According to reports, the Securities and Exchange Commission of India, the regulator of the Indian market, will oversee legislation for the crypto sector when Bitcoin (BTC) is classified as an asset class. The sources also indicated that a group of experts will be convened to study the technology, and that the parliamentary session of the rainy season will discuss the introduction of the crypto bill.

tax problem
India has taken drastic measures to reduce tax-free cash, including demonizing the 500 and 1,000 rupee notes in 2016. The Government of India is deeply concerned about the way cryptocurrency gives users a certain degree of anonymity and how it can be used to finance Terrorism, money laundering, and aiding other forms of criminal activity. However, the question is whether cryptocurrency investors should pay for the ineffective digital application.

“Since the March 2020 Supreme Court ruling, crypto-related trading has become very popular in India, especially among the investment community of Generation Z and millennials,” Sumit Gupta, CEO of Indian crypto exchange CoinDCX, told Cointelegraph. Adding that “the well-intentioned rules will help strengthen the crypto ecosystem in our country.”

In March, Prime Minister Anurag Singh Thakur said that the government was collecting income tax on crypto income and even collecting goods and services from exchanges. However, he also noted that the government does not keep any data on cryptocurrency earnings because it does not have the ability to collect such information. Gupta added:

“We will continue to work with other partners in the crypto industry to present our collective proposals to the authorities.”
Shivam Tikral, CEO of BuyUcoin – one of India’s top exchanges – believes that RBI will eventually come. “I firmly believe that the Reserve Bank of India is not opposed to any financial innovation that has the potential to stimulate the Indian economy and create jobs for the youth,” he said, adding that the RBI is most concerned about the abuse of the power of cryptocurrencies.

However, Siddharth Sujani, founder and CEO of cryptocurrency research firm Crebaco Global, is more optimistic about India’s readiness for blockchain technology. “From a technological point of view, we are ready. It is easy to live in a regulated environment, [and] it will allow the government to control crypto transactions,” he said, adding, “India needs a department dedicated to regulating the crypto space. Encouraging the black market.” Tikral added:

“I have complete confidence in the RBI, and soon we can expect clarity on crypto regulations.”
The country’s approach to classifying cryptocurrencies as an asset class is positive news for the universe as it aligns with the ways of various other countries to create a better foundation for decentralized currencies.

“The Australian tax authorities have looked at cryptocurrencies as a digital asset for some time now,” said Michael Swan, founder and chief commercial officer of asset firm Unido. He added: “We consider the steps taken by India to be a natural progress in line with global sentiment.”

However, there are concerns that the cryptocurrency bill will be submitted to Parliament. After the RBI circular in 2018, the government created a group to cover news related to the crypto space. In 2019, this group recommended a complete ban on the use of digital currencies.

youth and hunger
India’s finance minister has said that India will not shut down all options for cryptocurrencies, which some interpret as a possible ban on private cryptocurrencies, paving the way for a government-backed central bank digital currency (CBDC).

Source: CoinTelegraph