The chairman of India’s Parliamentary Standing Committee on Finance stated that cryptocurrency legislation in India will be “distinctive and unique”. He added, “We have to balance stability and growth, but we know how important this whole crypto space is.”
The legislator gives an update on crypto legislation
Jayant Sinha, a lawmaker for the ruling Bharatiya Janata Party, spoke about India’s cryptocurrency legislation on Wednesday at an event organized by the Blockchain and Crypto Assets Council (BACC) of the Internet and Mobile Association of India (IAMAI).
Sinha, chairman of India’s Standing Finance Committee, stated that India will not be able to adopt the cryptocurrency policies used in advanced economies because the country still does not have full capital convertibility. He made it clear that India’s crypto policy will not follow the US, Japan or El Salvador, the country that this week made Bitcoin legal tender.
The legislature stated:
Our solution simply needs to be unique and unique because of our unique circumstances. We have to balance stability and growth, but we know how important this whole crypto space is.
He also noted that the committee would review crypto legislation in terms of national security, adding, “We need to be very vigilant about what is happening to these crypto assets and cryptocurrencies. The use of such crypto instruments in the financing of terrorism and for threats to internal security is something that we have to be aware of. “
On Tuesday, a former Deputy Governor of the Reserve Bank of India (RBI) R. Gandhi said that crypto in India needs to be regulated as an asset or commodity and must be governed by existing laws. He explained, “Once cryptocurrencies are accepted, rules could apply to the exchange of goods and the coins could be used to pay for goods and services,” Bloomberg said, quoting him as saying, “Then people can automatically start buying, selling and buying Start holding. ”
According to a recent report, the Indian government plans to regulate crypto assets as raw materials and according to use cases. Previously, there were reports that the government was planning to ban all cryptocurrencies such as Bitcoin so that only central bank digital currencies (CBDCs) could be issued by the RBI. Meanwhile, the central bank plans to launch a digital rupee model by the end of the year.
What do you think of India’s approach to crypto regulation? Let us know in the comment section below.
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