RBI seeks ban on crytocurrency in India, seeks help of others countries to enforce it
India Today
The finance minister said that RBI is suggesting to destabilize the effect of cryptocurrencies on the monetary and fiscal stability of a country.
The Reserve Bank of India (RBI) recently appealed for a ban on cryptocurrencies, but it seems that the government isn’t ready to put a prohibition on digital assets. Addressing this request in Lok Sabha, Finance Minister Nirmala Sitharaman asserted that the government needs global support for any effective regulation or ban on crypto.
“Cryptocurrencies are by definition borderless and require international collaboration to prevent regulatory arbitrage. Therefore, any legislation for regulation or for banning can be effective only after significant internal collaboration on evaluation of the risks and benefits and evolution of common taxonomy and standards,” Sitharaman said.
The finance minister said that RBI is suggesting to destabilize the effect of cryptocurrencies on the monetary and fiscal stability of a country. It is requesting the government to frame legislation on this sector. This is not the first time that RBI has gone against cryptocurrencies. It has previously pointed out some of the issues related to digital assets.
Back in November 2021, RBI governor Shaktikanta Das reported that crypto is a threat to any financial system until they are regulated in a proper way. He pointed out that cryptocurrencies are a serious threat to the macroeconomics and financial stability of the country. Das said that the government is looking into the issue and will soon act on this.
But, Sitharaman’s latest comment comes amid rumors claiming that the government is planning to launch legislation to regulate the crypto sector in the Monsoon session of Parliament that kicked off earlier today. However, the truth is that no such bill is under development.
Sitharaman stated that “the value of fiat currencies is anchored by monetary policy and their status as legal tender. However, the value of cryptocurrencies rests solely on the speculations and expectations of high returns that are not well anchored.”
Earlier this year, the government of India levied a 30 percent tax on virtual assets without any exemptions or deductions in the Union budget. In addition to this, buyers of cryptocurrencies are also required to pay 1 percent as TDS.
