Cryptocurrency: Cryptocurrency is not recognized in the country. Despite the announcement in November 2021, the government has not been able to bring a bill in Parliament to crack down on cryptocurrencies, while in the meantime two of the Parliament, the Winter Session and the Budget Session, have been completed. And the third monsoon session has started. However, there is no discussion of bringing the bill in this session also. It is necessary that the government has imposed 30 percent tax on profits from cryptocurrencies and 1 percent TDS on trading. Meanwhile, Finance Minister Nirmala Sitharaman has given a statement in Parliament regarding making laws on cryptocurrencies. The Finance Minister has said that any law to regulate or ban cryptocurrencies will be effective only after international cooperation. The Finance Minister said that cryptocurrencies cannot be tied within the borders of any country. Therefore, international cooperation will be required to prevent its regulatory arbitration.
RBI in favor of ban on crypto
This answer of the Finance Minister has come to the fore in writing on the question asked during the Question Hour in the Lok Sabha. The question was asked to the Finance Minister whether the government is considering enacting a law to ban the use of cryptocurrencies in the country? The Finance Minister was also asked whether the RBI has recommended the government to enact a law to control cryptocurrencies in the country. On this, the Finance Minister agreed and said that the RBI has recommended making laws for this sector. At the same time, he said that the RBI expressed concern that cryptocurrencies threaten the monetary and financial stability of the country. The Finance Minister said that the RBI is in favor of a complete ban on cryptocurrencies.
Negative impact of cryptocurrencies on the economy
The Finance Minister told Parliament that the RBI has expressed concern about the negative impact of cryptocurrencies on the Indian economy. He said that RBI does not consider cryptocurrencies as currency because the central bank or government of the country has the right to issue any currency. And its central bank recognizes that currency. But the value of cryptocurrencies is completely dependent on speculation.