Destabilizing speculation

Crypto Ban, Effective Regulation Only With Meaningful International Collaboration – Regulation Bitcoin News

India’s finance minister has informed parliament that the central bank, the Reserve Bank of India (RBI), wants cryptocurrencies to be banned. However, she noted that “any regulation or prohibition legislation can only be effective after significant international collaboration.”

Indian Finance Minister on Crypto Ban and Regulation

Indian Finance Minister Nirmala Sitharaman answered a few questions about cryptocurrency in Lok Sabha, the lower house of India’s parliament, on Monday.

MP Thirumavalavan Thol asked the Finance Minister if the Reserve Bank of India (RBI) “has recommended to come up with appropriate legislation to restrict the flow of cryptocurrency in India” and if “the government has a plan to legislate on a law restricting the use of cryptocurrency”. in India.”

The Minister of Finance replied, “Given the concerns expressed by RBI on the destabilizing effect of cryptocurrencies on the monetary and fiscal stability of a country, RBI has recommended the development of legislation on this sector.” She clarified:

RBI is of the opinion that cryptocurrencies should be banned.

However, Sitharaman noted that “cryptocurrencies are by definition borderless and require international collaboration to prevent regulatory arbitrage,” adding:

Therefore, any regulatory or prohibition legislation can only be effective after significant international collaboration on the assessment of risks and benefits and the evolution of a common taxonomy and standards.

The Indian government has consulted the International Monetary Fund (IMF) and the World Bank on crypto policies.

Last week, Sitharaman called on G20 countries to integrate crypto into the “automatic exchange of information” framework, which more than 100 countries already use. The Financial Stability Board (FSB) has also said it is working on a “robust” regulatory framework for crypto assets and will report its recommendations to G20 finance ministers and central bank governors in October.

RBI Governor Shaktikanta Das recently stated that “cryptocurrencies are a clear danger”, pointing out that “anything that derives its value from a pretense, without any underlying, is only speculation under a fancy name”. Additionally, the Chief Economic Advisor to the Government of India, V. Anantha Nageswaran, warned in June of the danger of crypto and the risks posed by its lack of regulation.

Meanwhile, cryptocurrency income is taxed at 30% in India, and a 1% withholding tax (TDS) on crypto transactions came into effect earlier this month.

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What do you think of the words of the Indian Minister of Finance? Let us know in the comments section below.

Kevin Helms

An economics student from Austria, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests include Bitcoin security, open source systems, network effects, and the intersection between economics and cryptography.

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