Experts in Legal Affairs Say It’s Too Late To Ban Cryptocurrency, India Needs Comprehensive Regulation

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According to Indian legal experts, it is too late for cryptocurrency ban despite calls from the Reserve Bank of India (RBI) to ban it completely. The Swadeshi jagran Manch (SJM), which is an affiliate of the nationalist Rashtriya Swayamsevak Sangh passed a resolution calling on crypto to be banned. In the meantime, the Indian government is revising the crypto bill before submitting it again to parliament.

Legal Experts Explain It’s Too Late to Ban Crypto

The Indian government is under pressure from the country’s central bank and the Swadeshi Jagran Manch (SJM) to completely ban cryptocurrency.

At its recent meeting of the central bank of directors, RBI stated that cryptocurrency must completely be banned. It also said that a partial ban would not work. The Swadeshi Jagran Mangach (SJM), a nationalist affiliate of Rashtriya Swayamsevak Sangh also passed a resolution calling to ban cryptocurrency.

Although the government has not officially announced whether it will ban crypto or regulate it, legal experts are reportedly able to provide some insight.reportedlyIt is too late to ban cryptocurrency, he said.

They explained that the government’s cryptocurrency legislation will have to be balanced. This will not only ensure that investors will not be hurt but also prevent crypto from growing uncontrollably, which could threaten India’s foreign exchange reserves and disrupt its economy.

L. Badri Narayanan, executive partner at Lakshmikumaran & Sridharan Attorneys, was quoted as saying:

    The government is viewing cryptocurrencies as investment instruments and plans to regulate them. According to income tax rules, cryptocurrencies will be treated like assets and could attract capital gains. TDS and GST are two other areas in which the law is unclear.

According to legal experts, comprehensive regulation is required. They further noted that India’s cryptocurrency approach should not be compared to developed countries due to differences in foreign exchange regulations.

Narayanan also said that it would prove difficult for regulators in India to stop Indians sending cryptocurrency payments overseas.

    You cannot take money out of India without permission. We are a foreign currency-regulated market, which means that we cannot make certain decisions as developed countries with a free market.

FEMA (Foreign Exchange Management Act), cross-border movements of goods or services are classified as import/export.

Gita, the chief economist of International Monetary Fund, stated recently that banning cryptocurrency would be a difficult task due to their decentralized nature. She stressed the need for a global policy regarding cryptocurrency.

The Indian cryptocurrency bill that was submitted to parliament for consideration during the winter session was not approved. The government is reportedly working on the bill.