Watchdogs: Indian Crypto Really Has Seen The Elephant

India is one of the largest and fastest-growing crypto economies in the world, but there is still no clear regulation in the country, and the position regarding cryptocurrencies is uncertain.

Regulation By Law: Is Cryptocurrency Legal In India?

Regarding the regulation of cryptocurrencies in India by law, a proposal was put forward that mining, storing, selling, transferring and issuing cryptocurrencies should face a fine of 250 million rupees and a prison term of up to 10 years.

Bollywood For Crypto: How To Use Cryptocurrency In India

They offered recommendations on the rules for using cryptocurrency in India. The recommendation includes 5 points. First of all, in the recommendations on the cryptocurrency regulation Indian policy to the government, there was a need to create a legal basis for the classification of cryptocurrencies. It is argued that virtual currencies should be classified as digital assets and regulated similarly to gold, stocks, and market securities.

Cryptocurrency will no longer be subject to currencies, which will free them from putative regulatory measures from the Reserve Bank of India.

In addition to a clear classification of cryptocurrencies, the IndiaTech policy statement also touched on the exchange rules, as well as the tax regime for cryptocurrency trading in the country. The policy recommendations call for a virtual currency exchange licensing system in India under the supervision of an appropriate supervisory agency.

Regarding taxation, IndiaTech has presented proposals for both direct and indirect taxes on cryptocurrency, including capital gains tax and general taxes on services. The policy document also calls for reliable “know your customer” (KYC) verification protocols, as well as for the creation of self-regulatory organizations to work in tandem with government agencies.

Meanwhile, the government has also ordered all companies, both private and public, to start disclosing their crypto holdings.

Problems Of The Indian Method Of Market Regulation

For example, in 2018, the co-founder of the Unocoin exchange was arrested for installing a cryptomat. The trading platform can exchange digital financial assets, but it is strictly prohibited to use Indian rupees for trading operations.

In the summer of 2018, the country’s Central Bank ordered to ban any servicing of cryptocurrency exchanges, which led to the closure of some trading platforms. Others were forced to change their regional affiliation and moved to neighboring states. At the same time, the authorities planned to introduce a complete Indian ban of cryptocurrency on the storage of cryptocurrencies, even for individuals.

The content of this article is for informational purposes only and should not be construed as investment advice. We ask you to do your research.

Originally published at https://coinjoy.io.

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