Indian lawyers: “It’s too late to ban cryptocurrency” – Bits Media

Legal experts say, that it is too late to ban cryptocurrency in India. The government needs to develop comprehensive regulation of crypto assets, different from developed countries.

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

However, Indian lawyers believe, that it's too late to ban cryptocurrency. Head of the law firm Lakshmikumaran & Sridharan Attorneys Л. Badri Narayanan (L. Badri Narayanan) said, that the Indian government considers cryptocurrencies as investment instruments. He considers, that digital currencies, most likely, will be treated as assets and subject to income tax.

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

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

Previously Indian legislator Meenakshi Lekhi (Meenakshi Lekhi) stated, that cryptoassets should be banned, if they are used to harm the sovereignty and integrity of the country. Recall, that India has postponed the adoption of a law on regulating cryptocurrencies to 2022 year.