Reserve Bank of India renews calls for crypto ban

Central Bank of India officials Prohibit encryption.. Treasury Minister Nirmala Sisaraman supported the move, saying at a parliamentary meeting on July 18 that digital assets would have a “stabilizing effect” on “national fiscal stability.”

Indian authorities are planning indecisiveness

Reserve Bank of India (RBI) first tried to ban cryptography April 2018“Quoting risks related to”Above all, consumer protection, market integrity, money laundering.. “

however, March 2020The ruling was overturned by the Supreme Court, which considered the ban unconstitutional. Nevertheless, the imminent ban continued.

March 2021, Sisaraman The government appeared on national television, saying it wasn’t “blocking all options.” Instead, Sitaraman vaguely talked about the “window” to enable “cryptocurrency experiments.”

Despite the uncertain message, Indian crypto investors saw this as a victory. Co-founder of WazirX Nishal Shetty The announcement said it was a green light for developers to build and win.

Fast forward so far, all cryptocurrencies and NFT transactions are subject to a 30% goods service tax, transactions over 10,000 Indian Rupees ($ 125) are subject to an additional 1% tax, and transactions on major exchanges. The amount has decreased. ..

But now, less than a month after the 1% transaction tax came into effect, senior lawmakers are calling for a complete ban on cryptocurrencies.

A new call for cryptography

Sitaraman expressed support for the RBI’s call to ban cryptocurrencies in parliamentary debates.Justify her view, she talked Concerns about the “bad effects” of digital assets on the economy

She then revealed that only currencies issued by central banks meet fiat standards. She added that cryptocurrency valuations are speculative and negatively impact financial stability.

“”However, the value of cryptocurrency is speculative Expectations of high profits that are not sufficiently fixed, it will be unstable Impact on national financial and financial stability.“”

RBI says “Sitaraman”Recommended for legislative frameworkn “, but she did not disclose the details of the proposal other than asking for a ban.

Signed off and she acknowledged the need for international cooperation to enact bans to avoid “”Regulatory arbitrage. “