Cryptocurrencies are of concern to the Reserve Bank of India (RBI) in the context of macroeconomics and financial stability. The governor of RBI, Shaktikanta Das, stated this at the BFSI Insight Summit.
According to him, the RBI presented its point of view to the Government of India. Which is “actively studying this issue and will make a decision on it”. Das stressed that the regulator has “serious concerns” about digital assets.
Moreover, the governor questioned the reliability of reports on the number of cryptocurrency investors and the size of the industry in the country. Earlier, local media reported that more than 7% of the population own digital assets. Also, the Indian market has grown by 641% over the past year.
The government to ban cryptocurrencies
“Of course, my idea may not be entirely correct, since we do not receive complete information about these assets, since they are not regulated by us or any other central bank. But I still think that the number of investors looks clearly exaggerated, since most of them, more than 70%, invested only 1,000 rupees [~$13.44] in cryptocurrencies,” he said.
Despite the words of Shaktikanta Das, Indian politicians also noted the growth of the crypto industry in the country. On November 15, the Standing Committee on Finance will hold a meeting with industry experts.
At the end of January 2021, Coindesk reported about the Indian parliament’s plan to consider a bill proposed by the government to ban cryptocurrencies. Since April, Indian companies have been required to report transactions with digital assets, volume. As well as advances and deposits “from any persons”.
Indian crypto regulation
Recall that previously in October, the Indian government will submit a corresponding bill. By February 2022, the government will submit a corresponding bill, Business Today reported, citing representatives of the Ministry of Finance.
According to the interlocutors of the publication, the inclusion of cryptocurrencies in the legal field; implies taxation of transactions with these assets and income received from relevant transactions. Moreover, the Ministry of Finance and RBI are currently “busy finalizing the conceptual framework and the necessary rules.”
According to the Finder crypto report, about 30% of citizens own cryptocurrencies in India, but there is no legal framework in the country to regulate this market.