Nothing Outlaws Crypto in India if Legal Procedures Are Followed, Says Government Official
An Indian government official says that there is currently nothing that outlaws crypto 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 “cryptocurrency does not have any underlying value.”
Indian Government Official on Crypto
Indian government official Rajeev Chandrasekhar talked about cryptocurrency Thursday at an event in Bengaluru. Chandrasekhar currently serves as both India’s Minister of State for Electronics and Information Technology and Minister of State for Skill Development and Entrepreneurship. He is also a member of Rajya Sabha, the upper house of parliament.
He explained that India has no issue with cryptocurrencies if all laws are followed, Reuters reported, quoting him as saying:
There is nothing today that outlaws crypto as long as you follow the legal process.
The Indian government has not yet established a regulatory framework for cryptocurrency. In December last year, the government told parliament that crypto legislation “can be effective only with significant international collaboration.” Indian Finance Minister Nirmala Sitharaman recently said the government plans to discuss crypto regulations with the G20 countries.
However, crypto income is already taxed at 30% in India, and a 1% tax deducted at source (TDS) is levied on crypto transactions. Earlier this month, the government revealed that it is launching a crypto awareness campaign.
Meanwhile, India’s central bank, the Reserve Bank of India (RBI), has recommended a complete ban on cryptocurrencies such as bitcoin and ether. RBI Governor Shaktikanta Das said last week that “Cryptocurrency does not have any underlying value,” warning that “it will undermine the authority of the RBI and lead to the dollarization of the economy.” He even expects crypto to cause the next financial crisis if it is not banned.