Team  SoOLEGAL

CRYPTO REGULATION NEEDS TO BE GLOBAL, SAYS FM NIRMALA SITHARAMAN

Team SoOLEGAL 25 Jul 2022 10:52am

CRYPTO REGULATION NEEDS TO BE GLOBAL, SAYS FM NIRMALA SITHARAMAN

New Delhi: Finance Minister Nirmala Sitharaman has reiterated that the Centre would require international collaboration before enacting any cryptocurrency legislation.

In response to questions on cryptocurrency regulation in the Lok Sabha today, Ms. Sitharaman stated that the Reserve Bank of India believes cryptocurrencies should be banned completely.

Given the concerns raised about the destabilizing effect of cryptocurrencies on a country's monetary and fiscal stability, the RBI has recommended that legislation be enacted in this area. Cryptocurrencies, according to the RBI, should be prohibited.

She added, "Cryptocurrencies are by definition borderless and require international collaboration to prevent regulatory arbitrage. Therefore, any legislation for regulation or banning can be effective only after significant international collaboration on evaluation of the risks and benefits and evolution of common taxonomy and standards.”

The Finance Minister's remarks come less than six months after she revealed a strict tax regime that would include cryptocurrencies in the GST regime.

During the 2022 Budget speech, she announced a 1% TDS on all crypto transactions and a 30% income tax on all digital currency income, with no option to offset losses.

Regardless of the tax regime, the government maintains that cryptocurrencies are not 'legal.'

"We haven't said that this is currency. We haven't said that this has intrinsic value, but certain operations are taxable for the sovereign, which is why we have taxed," Ms. Sitharaman had stated in April.

Even so, the government has made no move to pass legislation making them illegal, as neighboring China did last year.

The RBI has been emphasizing the risks of cryptocurrency to both investors and India's monetary system. Previously, the central bank had prohibited the use of cryptocurrencies, but the Supreme Court lifted the prohibition in March 2020.



Tagged: Crypto   Regulations  
Did you find this write up useful? YES 0 NO 0
Featured Members view all

×

C2RMTo Know More

Something Awesome Is In The Work

0

DAYS

0

HOURS

0

MINUTES

0

SECONDS

Sign-up and we will notify you of our launch.
We’ll also give some discount for your effort :)

* We won’t use your email for spam, just to notify you of our launch.
×

SAARTHTo Know More

Launching Soon : SAARTH, your complete client, case, practise & document management SAAS application with direct client chat feature.

If you want to know more give us a Call at :+91 98109 29455 or Mail info@soolegal.com