Preparations to ban bitcoin in India
The Indian government will not impose a complete ban on cryptocurrencies like bitcoin or ethereum. If we look at the report of the Standing Committee on Financial Affairs, the same thing has come to the fore. The Standing Committee has advised to avoid any kind of complete ban. Now the same thing is coming out from the sources. An exclusive input by ‘Bloomberg’ states that the Indian government can find a middle ground while avoiding a complete ban on cryptocurrency. Under this, the government may not give the status of any currency or currency to bitcoin or other crypto, but is considering considering it as a financial asset. Maybe investors will get approval to invest money in crypto like gold and silver.
If the government gives the status of financial asset to cryptocurrencies, then the interests of millions of investors will be saved because in India, most of the world’s money will be invested in cryptocurrencies. The government can give some relief to these investors. The government would not want crores of rupees to be trashed after the ban of cryptocurrency. Therefore, the government can save small investors by giving cryptocurrencies the status of financial assets. The report of ‘Bloomberg’ also says that crypto will not be given legal tender status and the government will ban it. Here the meaning of legal tender can be considered as money, which is allowed by the Reserve Bank and regulates such fiat currency.
Investing Like Paper Gold?
Experts believe that investing in bitcoin can continue like gold. Just as people earn from digital gold, in the same way one can earn from digital currency i.e. bitcoin or ether. There is a debate going on in all the countries of the whole world including India whether to invest in gold or in cryptocurrency like bitcoin. But it is clear from the stand of the Government of India that crypto remained from getting currency status. In such a situation, even if bitcoin is allowed, then it will be like gold and silver. Just like you invest in paper gold or sovereign gold, so too will you invest in bitcoin. This investment will be completely in the eyes of the government and will come under the purview of tax-GST.
Shares will be used like bonds
Big experts in financial matters believe that looking at the path investment has taken in India, banning bitcoin etc. does not seem possible because millions of people’s money will be lost. In such a situation, the middle way is the only option left. The government cannot give cryptocurrencies the status of money. It will not get the same status in which you do money transactions or make payments. But it can be allowed to be held in the form of shares, gold or bonds.
There are reports in the media that if cryptocurrency gets the status of a financial asset, then the Securities and Exchange Board of India (SEBI) can take it under its regulation. SEBI can regulate the inclusion of bitcoin or ether as a cryptocurrency, like the Reserve Bank regulates money. Tax rules will also be made on bitcoin, which can be announced in the next budget.
gist of news
The central government wants to introduce the crypto bill in the Parliament session starting from November 29. A law coming in Parliament can set a minimum amount for investment in digital currency (cryptocurrency), while banning their use as legal tender. This has been said in a report of ‘Bloomberg’. Allowing a minimum amount of investment in cryptocurrencies may mean that the government gives some relief to investors by giving it the status of a financial asset. Although RBI is in favor of a complete ban on this, but a department of the government does not want this. Meanwhile, the Prime Minister’s Office is also keeping a close watch on this.
Read also: Government will make separate rules for tax-GST on trading of cryptocurrency, a big announcement may be made in the next budget