Crypto-ban, regulation only effective with significant international cooperation – regulation of Bitcoin news

India’s finance minister has informed parliament that the central bank, the Reserve Bank of India (RBI), wants cryptocurrencies to be banned. However, she noted that “any legislation for regulation or for prohibition can be effective only after significant international cooperation.”

Indian Minister of Finance for cryptocurrency bans and regulation

Indian Finance Minister Nirmala Sitharaman answered some questions about cryptocurrency on Monday in Lok Sabha, the lower house of India’s parliament.

MP Thirumavalavan Thol asked the finance minister whether the Reserve Bank of India (RBI) “has recommended to draft appropriate legislation to restrict the flow of cryptocurrencies in India” and whether “the government has any plans to legislate a law restricting the use of cryptocurrencies” in India . “

The Minister of Finance replied: “In light of the concerns expressed by the RBI about the destabilizing effect of cryptocurrencies on the monetary and fiscal stability of a country, the RBI has recommended for the formulation of legislation in this sector.” She elaborated:

The RBI is of the opinion that cryptocurrencies should be banned.

However, Sitharaman noted that “Cryptocurrencies are by definition borderless and require international cooperation to prevent regulatory arbitrage,” adding:

Therefore, any legislation for regulation or prohibition can be effective only after significant international cooperation on the evaluation of risks and benefits and the development of common taxonomy and standards.

The Indian government has consulted with the International Monetary Fund (IMF) and the World Bank on cryptocurrency policy.

Last week, Sitharaman urged the G20 countries to bring crypto within the framework of the “Automatic exchange of information”, which more than 100 countries already use. The Financial Stability Board (FSB) also said it is working on a “robust” regulatory framework for cryptocurrencies and will report its recommendations to G20 finance ministers and central bank governors in October.

RBI Governor Shaktikanta Das recently said that “Cryptocurrencies are a clear danger,” emphasizing that “anything that derives value from ideas, without any underlying, is just speculation under a sophisticated name.” In addition, the Indian government’s chief economic adviser, V. Anantha Nageswaran, warned in June about the dangers of crypto and the risks associated with the lack of regulation.

Meanwhile, cryptocurrency revenues are taxed at 30% in India, and a 1% withholding tax (TDS) on crypto transactions came into force earlier this month.

What do you think of the comments of the Indian Minister of Finance? Let us know in the comments section below.

Kevin Helms

An Austrian economics student, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects and the intersection of economics and cryptography.