Cryptocurrency Transactions Should be Recognized as an Asset Class and Regulated Centrally: Indian RW Body

Shumaila  |  Nov 20, 2021

According to India's most influential right-wing group RSS affiliated Swadeshi Jagaran Manch, the government should pass legislation that recognizes cryptocurrency transactions as an "asset class" and regulates them. Per a Swadeshi Jagran Manch spokesman, it will assist the government in uncovering illegal transactions and taking action against them.

Cryptocurrency Transactions Should be Recognized and Regulated

In an interview with an Indian media outlet, Swadeshi Jagaran Manch (SJM) co-convenor Ashwani Mahajan urged that the government ensure that data and hardware used in cryptocurrency mining, processing, and transactions remain on domestic servers.

"At the moment, it can be invested in by anyone from anywhere in the world through private exchanges controlled by private entities." When asked about his thoughts on cryptocurrencies, he responded, "And the worst part is, cryptocurrencies are not controlled by any central authority."

He stated that it will assist the government in uncovering illegal activities and taking action against them.

Mahajan also noted that there is no mechanism in place to see how encrypted transactions are performed through private exchanges, who's investing in them, or what the investors do with them.

“Legislation is needed to regulate cryptocurrencies and to recognize transactions done with it as an asset class. This will help develop a better understanding of the transactions for purposes of taxation and national security,” he added.

Cryptos Have No Intrinsic Value, Cannot be Compared with Gold

Mahajan dismissed the comparison of crypto assets to commodities such as gold as "unfounded," claiming that cryptos lack "intrinsic value."

He stated that private virtual currencies are "much at odds" with the concept of money, emphasizing that "no sovereign" should allow private entities to produce legal currency or anything similar to it.

"The majority of bitcoins are mined on the dark web, and we have no way of knowing who is the issuer." The funds do not represent any debts or liabilities owed by anyone. This cryptocurrency is not a form of payment. "It can't possibly be a currency," he remarked.

He went on to say that bitcoins have been used on the dark web around the world to pay for guns, narcotics, and other illegal activities.

Prime Minister Narendra Modi convened a meeting on November 13 to discuss the future of bitcoin amid concerns. A parliamentary panel chaired by BJP leader Jayant Sinha addressed the benefits and drawbacks of crypto-finance with various stakeholders on November 15.

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