Earlier this year, the Government of India announced a tax of 30% on income earned from cryptocurrencies. This announcement shocked the crypto investors, and the future of the digital asset industry in the country seemed troublesome.
Recent statement by India’s finance minister in the parliament has put up several questions in front of the investors.
Recently, the finance minister of India, Nirmala Sitharaman, conveyed RBI’s concerns in the parliament regarding cryptocurrencies’ destabilizing effect on the monetary and fiscal stability of a nation.
The minister also mentioned that “RBI is of the view that cryptocurrencies should be banned”. Her official statement said, “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 international collaboration on evaluation of the risks and benefits and evolution of common taxonomy and standards.”
The finance minister also pointed out that the Reserve Bank of India has been warning crypto holders, traders, investors, and industry leaders since December 2013.
The crypto sector in India has witnessed a sharp downfall in trading volume in recent times ever since the central bank is restraining banks and financial entities from engaging with platforms involving cryptocurrencies.
This happened after the instance when the Government of India suggested developing a regulatory body for cryptocurrency in the nation and was supposed to announce a bill for the same. But, the industry is still waiting to see what the Indian Government is up to.
RBI seeks Government to ban Cryptocurrencies in the Country.
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