According to Indian legal experts, it is too late for cryptocurrency ban despite the calls for complete ban from the central bank, The Reserve Bank of India (RBI). Swadeshi Jagran Mangach (SJM), a nationalist affiliate of Rashtriya Swayamsevak Sangh also passed a resolution calling to ban crypto. The Indian government is currently reworking the bill to ban crypto before submitting it again to parliament.
Legal experts explain why it’s too late to ban crypto
The Swadeshi Jagran Mandach (SJM), India’s central bank, is urging the Indian government to ban all cryptocurrency.
At its recent meeting of central board of directors, the Reserve Bank of India (RBI), stated that cryptocurrency must be completely banned. A partial ban will not work. Swadeshi Jagran Mangach (SJM), a nationalist affiliate of Rashtriya Swayamsevak Sangh also passed a resolution calling to ban cryptocurrency.
Although the government has yet to make an official announcement about whether it will ban crypto or regulate it, legal experts have said that it is too late for them to do so.
They stated that the government’s crypto legislation must be balanced. This will ensure that crypto investors are not hurt and also stop the growth of cryptocurrency uncontrollably which could cause India to lose its foreign currency reserves and disrupt its economy.
L. Badri Narayanan was the executive partner of Lakshmikumaran & Sridharan Attorneys. He was quoted as saying:
The government sees cryptocurrencies as an investment instrument and plans to regulate them. Cryptocurrencies will likely be treated as assets under income tax rules and can attract capital gains. TDS and GST are two other areas in which the law is unclear.
According to legal experts, comprehensive regulation is required. Due to the differences in foreign exchange regulations, India’s cryptocurrency approach cannot be compared with developed countries.
Narayanan explained that regulators would have to be able to prevent Indians sending cryptocurrency payments overseas.
Without permission, you cannot take money out India. We are a market that is foreign exchange-regulated and cannot make certain decisions as developed countries with a free market.
FEMA (Foreign Exchange Management Act) classifies cross-border movements of goods and services as import/export. The publication is conveyed.
Gita Gopinath, chief economist at International Monetary Fund, stated that banning cryptocurrency would present practical problems due to their decentralized nature. She stressed the importance of a global policy regarding cryptocurrency.
The Indian cryptocurrency bill, which was to be considered in the winter session was not adopted. According to reports, the government is currently reworking the bill.
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Kevin, a student of Austrian Economics and evangelist since then. His interests include Bitcoin security, open source systems, network effects, and the intersection of cryptography and economics.
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