Indian lawyers claim that cryptocurrency is not safe to ban, despite repeated calls by the Reserve Bank of India for an outright ban. Swadeshi jagran Manch, an affiliate to the nationalist Rashtriya Swayamsevak Sangh (SJM), also adopted a resolution calling on a complete ban on cryptocurrency. In the meantime, the Indian government continues to work on the crypto bill and will resubmit it to parliament.
Legal Experts Explain It’s Too Late to Ban Crypto
The Indian government is under pressure from the country’s central bank and the Swadeshi Jagran Manch (SJM) to completely ban cryptocurrency.
At its most recent meeting of central bank of directors, the Reserve Bank of India (RBI), stated that all cryptocurrency should be banned. A partial ban would not work. Swadeshi Jagran Mangach (SJM), a nationalist affiliate of Rashtriya Swayamsevak Sangh also adopted a resolution calling to ban cryptocurrency.
Although the government has yet to make an announcement about whether or not it will regulate cryptocurrency, experts claim that it’s too late.
They explained that the government’s cryptocurrency legislation will have to be balanced. This will not only ensure that investors will not be hurt but also prevent crypto from growing uncontrollably, which could threaten India’s foreign exchange reserves and disrupt its economy.
L. Badri Narayanan, executive partner at Lakshmikumaran & Sridharan Attorneys, was quoted as saying:
The government views cryptocurrencies and plans to regulate. Cryptocurrencies will likely be considered assets under income tax rules and can attract capital gains. TDS, GST and TDS also have unclear legal positions.
According to legal experts, comprehensive regulation was required. They further noted that India’s cryptocurrency approach should not be compared to developed countries due to differences in foreign exchange regulations.
Narayanan said that Indians could send crypto money overseas but it was difficult for authorities to do so.
India does not allow money to be taken out without authorization. Our market is foreign exchange-regulated, so we can’t make the same decisions as countries with free markets.
FEMA (Foreign Exchange Management Act) classifies cross-border movements of goods or 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 cryptocurrency policy.
Indian cryptocurrency legislation was not up for discussion during the winter session. The government is currently reworking it.
Do you think it’s too late to ban crypto in India? Comment below to let us know your thoughts.
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