The monsoon session of the Parliament commenced today and will conclude on August 12. Finance Minister Nirmala Sitharaman took it upon herself to open up on the Government’s stance on Cryptocurrency and regulations. She stated that the RBI expressed concerns on destabilizing effect of cryptocurrencies on the monetary. And fiscal stability of a country.
In view of the concerns expressed by the RBI on the destabilizing effect of cryptocurrencies on the monetary and fiscal stability of a country. The RBI has recommended framing of legislation on this sector. The RBI is of the view that cryptocurrencies should be prohibited. Cryptocurrencies are by definition borderless and require international collaboration to prevent regulatory arbitrage. Therefore, any legislation for regulation or for banning can be effective only after significant international collaboration on evaluation of the risks and benefits and evolution of common taxonomy and standards”. FM Nirmala Sitharaman said during the proceedings of the house.
This bombshell comes on the heels of India adopting a strict taxation policy. For all cryptocurrencies, with a 30% crypto tax, 1% TDS and probable inclusion in the GST gambit.
The move will impact an already floundering crypto economy in India and across the world. With major cryptocurrencies such as Bitcoin and Ethereum losing some of it’s value.
