An Indian government official says there is currently nothing banning cryptocurrencies in India “as long as you follow the legal process.” Meanwhile, the country’s central bank, the Reserve Bank of India (RBI), has stressed that “cryptocurrencies have no underlying value.”
Indian Government Official on Crypto
Indian government official Rajeev Chandrasekhar spoke about cryptocurrencies on Thursday at an event in Bangalore. Chandrasekhar currently serves as the Minister of State for Electronics and Information Technology and the Minister of State for Skills Development and Entrepreneurship of India. He is also a member of the Rajya Sabha, the upper house of parliament.
He explained that India has no problem with cryptocurrencies if all laws are followed, Reuters reported, quoting him as saying:
Today, there is nothing that prohibits cryptocurrencies as long as you follow the legal process.
The Indian government has yet to establish a regulatory framework for cryptocurrencies. In December last year, the government told parliament that crypto legislation “can be effective only with significant international collaboration.” India’s Finance Minister Nirmala Sitharaman recently said that the government plans to discuss crypto regulations with G20 countries.
However, crypto income is already taxed at 30% in India, and a 1% deducted at source tax (TDS) is levied on crypto transactions. Earlier this month, the government revealed that it is launching a cryptocurrency awareness campaign.
Meanwhile, India’s central bank, the Reserve Bank of India (RBI), has recommended an outright ban on cryptocurrencies like bitcoin and ether. RBI Governor Shaktikanta Das said last week that “cryptocurrencies have no underlying value,” warning that it “will undermine the authority of the RBI and lead to dollarization of the economy.” He even expects cryptocurrencies to cause the next financial crisis if they are not banned.
What do you think of the statement by the Indian government official Chandrasekhar? Let us know in the comments section.
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