The Future Of Cryptocurrency In India
We are well aware that cryptocurrency hasn’t yet achieved legal status in India. Recent news about crypto may have something to do with this. Recently, PM Narendra Modi has urged democratic countries to come forward regarding the discussion on crypto and said that cryptocurrency should not fall into the wrong hands and spoil the youth. The Indian government may not impose a Bitcoin ban but seems to be considering imposing regulatory control on cryptocurrency.
These updates came from a recent meeting conducted on regulating digital tokens in India. Cryptocurrency is still not recognized as an official currency in India and isn’t taxable yet. And even though cryptos may not be recognized as an official currency in India yet, they get identified as assets like gold, shares, etc.
The news around it has been that a complete ban on crypto doesn’t sound appropriate, as the entire world is moving in the direction of crypto. So, the government is working on embracing it with proper regulations.
Many countries are considering setting up CDBCs (Central Bank Digital Currency), but even if they come in, this institute will coexist with private cryptocurrencies. The RBI (Reserve Bank of India) has warned repeatedly against the use of cryptocurrencies because the financial stability of the nation could get affected if cryptocurrencies may flow freely. Regarding CDBC, the RBI still has unanswered questions before it considers converting crypto to cash.
The government is also considering taxing cryptocurrencies. The upcoming legislation is likely to include discussions on the taxation of cryptocurrencies. It might also classify crypto trading platforms as e-commerce websites.
Final Thoughts
There is a lot of discussion going on regarding setting up regulations on cryptocurrencies by the Indian government. We are now to find out how it will affect the way cryptos function currently.
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