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According to reports, Indian legal experts stated that although the Central Bank of India (RBI) has called for a total ban on cryptocurrencies, it is too late to ban cryptocurrencies. Swadeshi Jagran Manch (SJM), an affiliate of the nationalist Rashtriya Swayamsevak Sangh, also passed a resolution calling for a complete ban on cryptocurrencies. At the same time, the Indian government is re-enacting the encryption bill and then resubmitting it to Parliament.
Legal experts explain that it is too late to ban encryption
The Indian government is under pressure from the country’s central bank and Swadeshi Jagran Manch (SJM) to ban cryptocurrencies completely.
The Reserve Bank of India (RBI) stated at its recent central board meeting that cryptocurrency Must be completely banned And some bans will not work.The nationalist Rashtriya Swayamsevak Sangh’s subsidiary Swadeshi Jagran Manch (SJM) also passed a resolution Call for prohibition About cryptocurrency.
Although the government has not officially announced whether it will ban or regulate cryptocurrencies, legal experts It is said that It is too late to say that cryptocurrencies are banned.
They explained that the government’s cryptocurrency legislation must be balanced. This not only ensures that investors will not be harmed, but also prevents the uncontrolled growth of cryptocurrencies, which could threaten India’s foreign exchange reserves and disrupt its economy.
L. Badri Narayanan, managing partner of the law firm Lakshmikumaran & Sridharan, was quoted as saying:
The government regards cryptocurrency as an investment tool and plans to supervise it. According to income tax rules, cryptocurrencies may be considered assets and attract capital gains. GST and TDS are other areas with unclear legal status.
According to reports, legal experts added that comprehensive supervision is needed. They further pointed out that due to differences in foreign exchange regulations, Indian cryptocurrency methods should not be compared with developed countries.
Narayanan also explained that it would be challenging for regulators to prevent Indians from sending cryptocurrency payments overseas, and elaborated:
You cannot take money out of India without permission. We are a market subject to foreign exchange control, which means that we cannot make certain decisions like developed countries with free markets.
The publication stated that under FEMA (Foreign Exchange Management Act), cross-border movements of goods and services are classified as imports and exports.
Recently, Gita Gopinath, chief economist of the International Monetary Fund (IMF), stated that the ban on cryptocurrencies will Present practical challenges, Given their decentralized nature. She emphasized the need to formulate a global policy on cryptocurrencies.
The Indian cryptocurrency bill that was included in the winter meeting of Parliament for consideration is Not occupied, According to reports, the government Amend the bill.
Do you think it is too late to ban encryption in India? Please let us know in the comments section below.
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