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Wednesday, August 17, 2022

India should benefit from crypto world, understand them, say experts on crypto ban

Finance Minister Nirmala Sitharaman informs Parliament that the Reserve Bank of India supports a ban on cryptocurrencies, but the Indian government will regulate digital assets based on a global framework, the Indian crypto community said, adding that the country should take steps to understand this . Asset class best practices and benefit from them. Some experts also agreed with the RBI’s stance that cryptocurrencies cannot be a regular currency.

“What the Finance Minister said in Parliament are two known positions, namely, first, that the RBI does not favor crypto and second, that the government wants to keep pace with global regulation. What we are saying is that the world over The U.S. governments are figuring out how to regulate crypto,’ said Rajagopal Menon, vice president of leading crypto exchange firm WazirX.

“Cryptocurrencies are by definition borderless and require international cooperation to prevent regulatory arbitration. Therefore, any legislation to regulate or ban will take effect only after significant international cooperation on the assessment of risks and benefits and the development of common classifications and standards. Maybe,” Finance Minister Nirmala Sitharaman told Parliament on Monday when she was asked about India’s stance on this digital asset class.

“Crypto is an asset class that is being regulated globally and India should not be deprived of its benefits. We need to take the example of countries that have already regulated crypto and see that employ them. How it has benefited in creation, economic growth, empowering entrepreneurs etc,” Menon told News18.com.

“Therefore, India must take a step to collaborate and understand the best practices so that we do not lose out in the long term. Developers are working towards the vision of making the next Facebook and Google in Web3 from India and the government of these entrepreneurs can benefit greatly by helping them achieve their goals.”

Suman Banerjee, CIO at Headnova, however, said the RBI’s stand is justified as cryptocurrencies can be used for money laundering in the Indian context.

“As per the Coinage Act, 2011, RBI is right. Currency can be produced only by RBI. The Finance Ministry has clarified that cryptocurrency is an asset and not a currency. The debate goes beyond that. The real reason RBI wants to crack down on crypto is its use in money laundering,” he told News18.com.

Banerjee said there is a need to control the use of crypto as legal tender. “India is a non-capital convertible country. This means that there are a lot of regulations on Indian people or companies on their ability to convert the rupee into another currency. When a lot of Indians start doing this, that is, selling the rupee and buying another currency, the rupee weakens. Cryptocurrencies are US dollar-denominated. Bitcoin for $20,000. You must have never heard of bitcoin being Rs 15 lakh. RBI is right in the Indian context, there is a need to regulate the use of crypto as legal tender,” he said.

The Reserve Bank of India has repeatedly warned against the macroeconomic effects of cryptocurrencies, and pointed to their problems while questioning their underlying fundamentals. The central bank governor also called cryptocurrencies a “real threat” in the RBI’s annual report. However, India is unlikely to ban cryptocurrencies immediately, and has instead started imposing high amounts of taxes on virtual digital assets.

World Nation News Desk
World Nation News Deskhttps://worldnationnews.com/
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