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In India, crypto currencies are still not approved. However, this does not mean that you can not use it. You can always use crypto-currency for personal transactions like buying and selling, but not for commercial transactions. If you want to do any kind of crypto-currency transaction, you need to get a special licence. The Reserve Bank of India has not yet issued a licence to any entity. The only way to do this is to register with the RBI, but a PAN card will not be issued. https://cryptoshrypto.com/
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Crypto currency has taken the country by storm. Everyone has something to say about it. The crypto bill and its taxation policy is the talk of the town. Crypto enthusiasts, young investors, crypto miners, and everyone else are thinking about how to capitalise on it. As it turns out, the Central Government of India is in favour of technology behind crypto currency, Blockchain but not the crypto currency. In the last couple of months, they have taken an active role in regulating crypto currency in India and have even decided to put up unique policies.
They continued their quest to crackdown cryptocurrencies with the latest on being the RBI's directive of barring banks from providing service to cryptocurrency exchanges. In the midst of this, the prices of cryptocurrencies have taken a hit and are expected to fall further. There is a lot of cryptocurrency news about market fluctuations every day. But, is this really the death knell of cryptocurrencies in India? We at Cryptoshrypto have written earlier about the different aspects of cryptocurrency regulations and how difficult it is for cryptocurrencies to get their act together. In this article, we will take a look at the recent developments and see why the RBI directive is an over-reaction. Stay tuned with us to find the latest cryptocurrency news from India.
Concerns About Cryptocurrency The rapid pace of technology and digital innovation, if not accompanied by proper safety measures, may constitute a supervisory burden for global financial authorities in a large country like India. Regulators will need to weigh the good and negative effects of developing technologies, especially if these technologies have an impact on markets and potentially influence how fiscal and monetary markets work. Dr. T. Rabi Sankar, (Deputy Governor, RBI), stated in a recent address that we have also seen that cryptocurrencies are not susceptible to definition as a money, asset, or commodity; they have no underlying cash flows, no intrinsic value; that they are equivalent to, and may be worse than, Ponzi schemes. One of the primary regulatory concerns is anything that may become a national security issue. Regulators are concerned about the abuse of crypto currencies, which leverage their anonymity to undermine anti-money laundering measures.
POLICY INDECISIVENESS In reality, there is no ban on the use of cryptocurrencies (or crypto assets), nor is there any rule that governs their actual use in India as per the latest crypto currency news. The crypto bill, which has been spoken about for a long time but is still languishing in successive sessions of Parliament, is supposed to "provide a facilitative framework for the formation of the official digital currency to be issued by the Reserve Bank of India." India recently decided to tax digital assets such as crypto currencies and non-fungible tokens (NFT), imposing a 30% tax on their transfer as well as a 1% tax deduction at source (TDS) on each transaction. This TDS, while minimal in cost and will not give the impression of a significant transaction, will provide a list of people who deal in cryptos. This action itself has sparked a discussion about the legality of such assets, as well as whether taxes on them have legitimised them.
The truth is that having crypto assets is no longer unlawful; nevertheless, taxing them does not necessarily make them legal. In India, crypto currencies are still not approved. However, this does not mean that you can not use it. You can always use crypto-currency for personal transactions like buying and selling, but not for commercial transactions. If you want to do any kind of crypto-currency transaction, you need to get a special licence. The Reserve Bank of India has not yet issued a licence to any entity. The only way to do this is to register with the RBI, but a PAN card will not be issued. A crypto currency is a digital asset designed to work as a medium of exchange. Cryptocurrencies use decentralised control as opposed to centralised electronic money and central banking systems. We would like to thank you for your time and hope you found the article useful.
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