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India’s Central Bank Wants to Ban Cryptos GOVT Says

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Today in the Lok Sabha, the minister of finance, Nirmala Sitharaman, talked about cryptocurrencies. She said, “Cryptocurrencies can be used anywhere, so we need help from everywhere to stop regulatory arbitrage.” So, for any law to work, whether it is to regulate or ban something, there needs to be a lot of international cooperation to figure out the risks and benefits, as well as a common taxonomy and set of standards. However, people are also asking what gives bitcoin its value when it has no intrinsic value, discussions are available on various blogs.

The Governor of the Reserve Bank of India (RBI), Shaktikanta Das, even called it a “serious risk” in the central bank’s annual report. We can’t relax because more danger is on the way. Cryptocurrencies are clearly a risk. 

She said, “Rumors and false hopes of making a lot of money are the only things that change the value of cryptocurrencies right now.” 

Cryptocurrencies have no value on their own. The Indian Internet and Mobile Association shut down the Blockchain and Crypto Assets Council (BACC) last week (IAMAI). The Blockchain and Cryptocurrency Industry was represented by BACC.

The Reserve Bank of India (RBI) and crypto exchanges are disagreeing more and more about how the law in India should treat virtual currencies. People have been talking about getting rid of the BACC since 2017. In 2017, BACC was set up.

The Indian government said in its Union Budget from earlier this year that profits from virtual assets would be taxed at a fixed rate of 30%, with no exceptions or deductions. Also, starting today, anyone who buys digital or virtual assets will have to pay a 1 percent transaction tax.

It is important that the tax is taken out either when the money goes into the resident’s account or when the resident is paid, whichever comes first. The tax will only be taken out if the total amount paid is more than the most that can be taken out.

To stop it, everyone will have to work together. Also, by 2030, it is thought that close to a billion people will use cryptocurrencies.

When it comes to laws, the European Union (EU) is now in the lead. About a month ago, an agreement was made in Brussels to make it easier to track transactions with crypto assets. The US and the rest of North America are talking about whether there should be more rules and laws like these or not. 

As crypto laws are taken more seriously by governments around the world, 2022 could be a turning point for the industry. Cryptocurrency doesn’t care where it is in the world, just like the internet. This means that in the future, countries will have to work together to make sure everyone follows the rules.

Is it illegal to use cryptocurrencies in India?

As has already been said, having cryptocurrency is not against the law in India. Instead, the data showed that it was the phrase that Indians searched for most on Google. But there aren’t any crypto exchanges in India right now, which makes it harder for the country to use the technology.

The Reserve Bank of India sent out a press release about virtual currencies on December 24, 2013. The purpose of the release was to let people who use, hold, or trade virtual currencies know that the services they offer are not approved, registered, or authorized. 

Some of the most important parts of the press release are listed below:

  • There is no central database, so if you lose your digital wallet, you might lose all of your virtual currency. Just because they exist, digital wallets are more likely to be stolen, hacked, or have malicious software put on them.
  • It is based on the idea of decentralization, which means that it is not controlled by a single authority. This means that there is no way to fix a problem if there is one.
  • They change a lot because they don’t have anything to back them up.
  •  There isn’t a clear set of rules for virtual currencies, so it’s both financially and legally risky.
  • Because it is anonymous, it could be used to break laws that are meant to stop terrorists from getting money and stop illegal money from being laundered.