Global cooperation required to implement crypto ban: Nirmala Sitharaman
On April 1, India enacted stringent crypto tax law, where users have to pay 30 percent tax on any income from the transfer of digital assets as well as 1 percent TDS (tax deducted at source).
Finance Minister Nirmala Sitharaman on Monday said that the Reserve Bank of India (RBI) has recommended the government frame regulations on cryptocurrencies.
According to the minister, the government would need international cooperation for such a ban.
While speaking in the Lok Sabha, she stated, “Cryptocurrencies are by definition borderless and require international collaboration to prevent regulatory arbitrage. Therefore, any legislation for regulation or for banning can be effective only after significant international collaboration on evaluation of the risks and benefits and evolution of common taxonomy and standards.”
On July 1, Reserve Bank of India (RBI) Governor Shaktikanta Das described cryptocurrencies as a "clear danger" and said that anything that derives value based on make believe, without any underlying, is just speculation under a sophisticated name.
Earlier in April, while addressing a seminar organised by the International Monetary Fund (IMF), the Finance Minister highlighted that cryptocurrency could be used for money laundering and regulation was the only way to tackle this.
Previously, in the month of February, the finance minister proposed a 30 percent tax on any income from the transfer of digital assets. The government announced that crypto traders now cannot balance the losses incurred from one virtual digital asset with the profits of another virtual digital asset. India’s first crypto law, came into effect on April 1.
Following the imposition of additional taxes, many Indian cryptocurrency industry insiders had expressed their displeasure with the government's crypto tax policy and called it unfair and regressive.
Edited by Affirunisa Kankudti
