"Nothing Today Outlaws Crypto in India if Law is Followed," Minister

"Nothing Today Outlaws Crypto in India if Law is Followed," Minister

The Minister of State in the Union Government of India said there are currently no issues with crypto in India "as long as you follow the legal process." However, the Reserve Bank of India (RBI), maintains that "cryptocurrency does not have any underlying value and should be banned."

Union Minister of State on Crypto

The Union minister of state, Rajeev Chandrasekhar, spoke about cryptocurrency on Thursday at an event in Bengaluru. Chandrasekhar currently serves as the Minister of State for Electronics and Information Technology and the Minister of State for Skill Development and Entrepreneurship in the Union Government of India. He is also a member of the Rajya Sabha, the upper house of Parliament.

The minister explained that India has no issue with cryptocurrencies if all laws are followed, reported Reuters, quoting him as saying:

"Nothing today outlaws crypto as long as you follow the legal process."

No Regulatory Framework on Crypto

The Indian government has not yet established a regulatory framework for cryptocurrency. In December 2022, the government apprised the parliament that crypto legislation "can be effective only with significant international collaboration." The Union 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 was launching a crypto awareness campaign.

The country'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.

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