Key Takeaways
- Former financial chief Subramaniam wants the Indian government to regulate cryptocurrencies
- Regulation will pave proper taxation and monitoring of illicit crypto transactions in the country
- India yet to release comprehensive regulatory framework for cryptocurrencies
Gandhi made these statements during a conference held by stakeholders within the blockchain industry on Tuesday, September 7, 2021.
According to the former regulator, the government needs to consider cryptocurrencies an asset or commodity.
He also added that the Reserve Bank of India must develop a regulatory framework to classify digital assets correctly.
This would ensure that they can be taxed appropriately, paving the way for citizens to hold, trade and invest in cryptocurrencies.
Gandhi also added that it would be difficult to stop criminals from using crypto-assets to conduct their operations without proper regulations.
He also noted that despite the potentials of blockchains, there should be caution placed on blockchain platforms that have anonymity features (Monero, Zcash).
The Indian government has had a turbulent relationship with cryptocurrencies.
The Reserve Bank of India (RBI) banned cryptocurrency-related transactions in the banking system in 2018.
However, the Supreme Court of India reversed the ban in 2020.
Since then, the government has been unable to settle on a comprehensive regulatory framework for digital currencies.
A proposed crypto law that was rumored to be in the process was set to issue a blanket ban against cryptocurrencies.
However, it appears that the Indian government has relaxed its stance, and there are indications that new regulations could be revealed in the coming weeks.
The local crypto-community continues to grow and is dominated mainly by WazirX, an exchange backed by Binance.
It remains to be seen when the new crypto regulations will be announced and their effect on the local blockchain industry.
What are thoughts on Gandhi’s comment on crypto regulations in India?
