Indian lawyers: “it’s too late to ban cryptocurrency”

Legal experts believe it is too late to ban cryptocurrency in India. The government needs to develop comprehensive cryptoasset regulation different from developed countries.

Earlier this month, the Reserve Bank of India (RBI) said the cryptocurrency should be completely banned. The regulator was supported by a branch of the nationalist organization Rashtriya Swayamsevak Sangh, which called for a ban on cryptocurrencies, but offered to allow traders to sell them subject to tax filing.

However, Indian lawyers believe it is too late to ban cryptocurrency. L. Badri Narayanan, head of law firm Lakshmikumaran & Sridharan Attorneys, said the Indian government is considering cryptocurrencies as investment vehicles. He believes digital currencies are likely to be treated as assets and subject to income tax.

Lawyers note that comprehensive regulation of the industry in the country is necessary. This will not only guarantee the safety of investors, but will also prevent the uncontrolled growth of cryptocurrency, which could threaten India’s foreign exchange reserves and disrupt its economy. That being said, India’s approach to cryptocurrency should not be compared to developed countries.

“You cannot withdraw money from India without permission. We have a regulated foreign exchange market, which means we cannot make some decisions as developed countries with a free market, ”Narayanan said.

Earlier, Indian lawmaker Meenakshi Lekhi said that crypto assets should be banned if they are used to damage the country’s sovereignty and integrity. As a reminder, India has postponed the adoption of the cryptocurrency regulation law until 2022.