Indian legal experts reportedly say it is too late to ban cryptocurrencies despite the central bank, Reserve Bank of India (RBI) calling for an outright crypto ban. Swadeshi Jagran Manch (SJM), a subsidiary of the nationalist Rashtriya Swayamsevak Sangh, also passed a resolution calling for a complete ban on crypto. Meanwhile, the Indian government is revising the crypto law before it is presented to parliament again.
Legal experts explain that it is too late to ban crypto
The Indian government is under pressure from the country’s central bank and Swadeshi Jagran Manch (SJM) to ban cryptocurrencies entirely.
The Reserve Bank of India (RBI) said at its most recent board meeting that cryptocurrency must be banned completely and that a partial ban doesn’t work. The Swadeshi Jagran Manch (SJM), an offshoot of the nationalist Rashtriya Swayamsevak Sangh, also passed a resolution call for a ban on cryptocurrency.
While the government has not made an official announcement whether it will ban or regulate crypto, it has made legal experts allegedly said it is too late to ban cryptocurrencies.
They stated that the government’s cryptocurrency laws must be balanced. Not only will this ensure that investors are not hurt, but it will also prevent uncontrolled growth of crypto, 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 as investment vehicles and plans to regulate them. Under income tax regulations, cryptocurrencies are likely to be treated as assets and attract capital gains. GST and TDS are other areas in which the legal situation is unclear.
The legal experts reportedly added that extensive regulation is needed. They also noted that India’s approach to cryptocurrency should not be compared to developed countries due to differing foreign exchange regulations.
Narayanan also stated that it would be a challenge for regulators to prevent Indians from sending crypto payments overseas, stating:
You cannot take money with you from India without permission. We are a foreign exchange regulated market and that means we cannot make certain decisions like developed countries with a free market.
According to FEMA (Foreign Exchange Management Act), the cross-border movement of goods and services is classified as import / export and the publication is transmitted.
Recently, the chief economist of the International Monetary Fund (IMF), Gita Gopinath, said a ban on cryptocurrencies face practical challengesbecause they are decentralized. She stressed the need for a global policy on cryptocurrency.
Do you think it’s too late to ban crypto in India? Let us know in the comment section below.
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Source: Crypto News Austria