Crypto trading in India not banned if regulated: IT minister

According to a recent statement by India’s Minister of Electronics and Information Technology, Rajeev Chandrasekhar, if all regulations are followed, there are no problems with cryptocurrency exchanges in India.

His statement comes amid India’s presidency of the G20 and its central bank’s calls for a blanket ban.

No “Crypto Outlaw”

The minister said, “There is nothing today that bans cryptocurrencies as long as you go through the legal process.”

Last year, the government proposed a 30% tax on proceeds from the sale of cryptocurrencies. However, they refrained from commenting on the legality of the asset class.

Meanwhile, ahead of the 2023 budget release, the central bank is still advocating for a complete ban on cryptocurrencies. RBI governor Shanktikanta Das recently said that it is improper to classify cryptocurrencies as financial assets. Das has argued in the past that the cryptocurrency sector could lead to the next financial disaster.

At the same time, the domestic industry is awaiting a regulatory review by the administration in the next budget session. The government may therefore be able to provide the asset class with some degree of acceptability in the coming weeks, based on the IT minister’s statement.

G20 presidency will impact cryptocurrency trading in India

Observer Research Foundation (ORF), an independent think tank, said in its recent publication that regulating cryptocurrencies could ensure consistency with the country’s broader financial and economic policies.

Sauradeep Bag’s post also highlights India’s role as G20 chairman. The memo added that India will host 40 meetings across the nation as part of the financial path of its G20 presidency. Under this regime, India could regulate cryptocurrency activities and other focal areas of finance.

Therefore, India could play a key role in asset class legislation. Chandrasekhar also said the Indian government wants the country to be a producer of technology rather than just a source of talent.

That said, the nation is still working to address investor safety concerns. An Indian programmer was reportedly scammed out of $6,400 between January 1 and January 15.

In December 2022, the National Capital Police reported that a group of cryptocurrency investors were duped out of $61.5 million under the guise of receiving alpha returns.

Disclaimer

BeInCrypto has reached out to the company or individual involved in the story to get an official statement on the recent developments, but has yet to hear back.

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