IT Minister Greenlights Lawful Crypto Trading in India Amid G20 Presidency

2 mins
23 January 2023, 09:45 GMT+0000
Updated by Kyle Baird
23 January 2023, 09:45 GMT+0000
In Brief
  • The IT Minister of India states that if all regulations are followed, there is no problem with crypto trades in the country.
  • His statement comes amid India's G20 presidency and its central bank's calls for a blanket ban.
  • The government has thus far refrained from commenting on the legality of the asset class.
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According to a recent statement by India’s Minister of State for Electronics and IT, Rajeev Chandrasekhar, if all regulations are followed, there is no problem with crypto trades in India.

His statement comes amid India’s G20 presidency and its central bank’s calls for a blanket ban.

Nothing ‘Outlaws Crypto’

The minister said, “There is nothing today that outlaws crypto as long as you follow the legal process.”

Last year, the government proposed a 30% tax on the proceeds from selling cryptocurrencies. However, they refrained from commenting on the legality of the asset class.

Meanwhile, before the release of the 2023 budget, the central bank is still advocating for a complete crypto ban. Shanktikanta Das, governor of the RBI, recently claimed that it is improper to classify cryptocurrencies as financial assets. Das has argued in the past that the cryptocurrency sector could lead to the next financial disaster.

At the same time, the domestic industry is awaiting regulatory overhaul from the administration in the upcoming budget session. The government may therefore be able to provide the asset class some amount of acceptability in the coming weeks, based on the IT minister’s statement.

G20 Presidency to Impact Crypto Trades in India

Observer Research Foundation (ORF), an independent think tank, said in its recent release that the regulation of cryptocurrencies could guarantee consistency with more general financial and economic policies in the country.

The post by Sauradeep Bag also highlights India’s role as the G20 president. The note added that India would host 40 meetings across the nation as part of its G20 presidency’s finance track. Under this regime, India could regulate cryptocurrency assets and other focal areas of finance.

Therefore, India could play a key role in legislating the asset class. Chandrasekhar also stated that the Indian government wants the country to be a producer of technology rather than just a source of talent.

That said, the nation is still working to address investor safety concerns. A programmer from India was reportedly conned out of $6,400 between Jan. 1 and Jan. 15.

In December 2022, police from the national capital reported that a group of cryptocurrency investors was duped out of $61.5 million under the pretense of receiving alpha returns.

Disclaimer

BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.

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