RBI Restates Crypto Warnings Despite Supreme Court Pressure
RBI maintains crypto caution, ignoring Supreme Court’s regulative push forward. Supreme Court prompts swift action, cautions crypto ban is impractical. The Reserve Bank of India (RBI) has once again warned against the dangers of crypto, emphasizing that its position remains unchanged. Industry advocates urge the government to ease the tax burden on cryptocurrencies to prevent India from falling behind in the global digital economy.
Supreme Court Advises Swift Action on Crypto Regulation
In a recent press conference, Sanjay Malhotra, Secretary of the Department of Economic Affairs, reiterated the RBI’s concerns about the impact of cryptocurrencies on financial stability. Despite pressure from the Supreme Court, the RBI maintains a steady stance on crypto regulations. Justices Surya Kant and N Kotiswar Singh highlighted the impracticality of a complete crypto ban and urged the government to establish clear guidelines to prevent misuse and market confusion.
Industry Urges Government to Alleviate Crypto Tax Burden
Crypto stakeholders in India are calling for revisions to the country’s stringent tax policies on digital assets. The current tax regime, implemented in 2022, imposes a 30% tax on crypto gains and an additional 1% tax on transactions, leading many traders to operate outside India. Experts suggest that by amending regulations and taxes, India’s crypto market could potentially reach $15 billion. The industry emphasizes the need for balanced and transparent regulations to foster growth and innovation.
Despite regulatory challenges, the RBI continues to advocate caution towards cryptocurrency while recognizing the evolving legal landscape. As India navigates the complexities of the digital economy, regulatory clarity and tax reforms are essential for sustainable growth and competitiveness.
