A member of India’s Monetary Policy Committee (MPC) has given relief to Indian crypto investors from rumors that the crypto sector may be completely banned in the country. Ashima Goyal recently said in an interview with Press Trust of India that it is difficult to implement a complete ban on crypto-related activities. According to Goyal, India will not legalize any cryptocurrency as legal tender, mainly because it is likely to be misused for illegal activities. Cryptocurrencies are not regulated by any financial body in the world and allow massive cross-border transactions in an instant and untraceable manner.
Goyal in his interview denied calling crypto coins “currency”, saying that they are neither sufficient nor acceptable as a payment option in India.
The Economist believes that these decentralized digital assets should be called “crypto tokens” and that these tokens should be regulated by India’s governing authority, the Press Trust of India. Reported,
Earlier in November, India listed a crypto-centric agenda for discussion in the winter session of Parliament. A “cryptocurrency bill” had to be expanded for approval, which reportedly called for a ban on all private cryptocurrencies in the country.
According to Summary According to the bill, the Indian government plans to impose a general ban on all activities by any person on mining, production, holding, selling, (or) dealing in digital currencies as a “medium of exchange, store of value and as a unit”. Was being Cause”.
Violation of rules was listed as a non-bailable Crime,
However, the bill did not reach Parliament and instead it was first submitted to Prime Minister Narendra Modi’s cabinet for approval.
There’s no word about the document since.
“Big transactions can be allowed only from risk-aware investors,” Goyal said. cryptocurrency can work in the country.
Earlier this week, the Reserve Bank of India (RBI) requested the government to completely ban crypto activities in the country. Excessive price volatility as well as the potential for misuse emerged as the RBI’s top concerns.
The chaos over the regulation of cryptocurrency in India comes at a time when the sector is expanding rapidly in the world’s second most populous country.
Many studies from research firms such as seer guru And BrokerChoose has revealed that India has the largest number of crypto investors in the world. This number is being told about 100 crores.
Meanwhile, the year 2021 turned out to be a milestone for the crypto sector.
Last year, the global crypto market capitalization soared to $3 trillion (approximately Rs 2,15,66,720 crore) and created a new all-time high.
In September last year, while El Salvador Legalized bitcoin as legal tender in the country.
However, in the same month China imposed a complete ban on all crypto activities, making it a punishable offence.
India’s stand on the crypto space is still awaited.
Cryptocurrency is an unregulated digital currency, is not legal tender and is subject to market risks. The information in this article is not intended to be financial advice, business advice or any kind of advice or recommendation given or endorsed by NDTV. NDTV shall not be liable for any loss arising out of any investment based on any alleged recommendation, forecast or any other information contained in the article.
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