Reserve Bank of India (RBI) has opined that the intangibility, of Crypto Assets, makes them difficult to regulate.
On Saturday, Prime Minister Narendra Modi chaired a high-level meeting with various Government departments and stakeholders to discuss the future of the Crypto Industry, as reported by Asian News International (ANI).
During the meet, it was argued that “non-transparent advertisements” about crypto investments can “mislead the youth” by “over promising” the returns; such advertisements should be stopped.
Also, it was felt that the unregulated crypto market should not become an avenue for money laundering and terror financing, as revealed by a source.
Many Government Departments favoured some form of regulation.
But the stance of the Reserve Bank of India (RBI) is contrary. RBI is believed to have reiterated its advocacy of a ban on crypto, according to an Economic Times (ET) report.
RBI identified the intangibility of Crypto Assets as the core bottleneck making taxation and regulation challenging. It also pointed out that many Indians buy crypto from outside the country, which further complicates the matter.
Regulation would need global cooperation as the industry does not have any clearly defined national jurisdictions. Moreover, any step towards regulation would require consultation with experts and other stakeholders.
India will take progressive and forward-looking steps towards the regulation of the industry.
But many questions need to be answered before any decision is made. Today’s meeting between Crypto Industry Players and the Parliamentary Standing Committee on Finance today to discuss ‘CryptoFinance: Opportunities and Challenges’ will bring some clarity on the way forward.
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