The Indian Finance Minister Nirmala Sitharaman stated that the country's central bank, the <a href="https://www.cryptoknowmics.com/news/the-reserve-bank-of-india-confirms-cryptocurrencies-are-not-illegal/" target="_blank" rel="noopener">Reserve Bank of India</a> (RBI), supports the ban on crypto. However, according to her, this process would not be possible without significant international collaboration.

<h2 class="typography__StyledTypography-owin6q-0 fPbJUO">Global Collaboration Needed For Cryptocurrency Regulation</h2>
According to a local media <a href="https://www.livemint.com/news/india/cryptocurrency-rbi-seeks-ban-but-india-needs-global-support-to-regulate-it-says-fm-nirmala-sitharaman-11658129082511.html" target="_blank" rel="nofollow noopener">report</a> from today, India's finance minister Nirmala Sitharaman wrote a statement in response to five written questions from Thirumaavalavan Thol, a member of parliament. The questions included whether the RBI remains concerned over the impact of cryptocurrencies on the economy and whether there was any effective legislation to restrict its usage. 
<blockquote>"RBI has recommended for framing of legislation on this sector. RBI is of the view that cryptocurrencies should be prohibited. Cryptocurrencies are by definition borderless and require international collaboration to prevent regulatory arbitrage," Sitharaman wrote.
</blockquote>
Sitharaman, however, seems to believe that a "global collaboration" is needed for any effective regulation or ban.
<blockquote>"Therefore any legislation for regulation or for banning can be effective only after significant international collaboration on evaluation of the risks and benefits and evolution of common taxonomy and standards," she added.
</blockquote>
The finance minister further told the Parliament that the RBI does not consider cryptocurrencies as actual currencies, as only central banks or governments can issue modern currency. Moreover, the value of cryptocurrencies rests solely on speculations, she added. As she pointed out, the expectations of high returns not being well anchored, she said, would have a "destabilizing effect on the monetary and fiscal stability of a country."


Sitharaman's comments come as India's adoption of a strict taxation regime with a 30% crypto tax, 1% TDS, and a potential 28% tax inclusion in the GST ambit.

Indian Finance Minister: Indian Govt Needs Global Support to Ban Crypto

The Indian Finance Minister Nirmala Sitharaman said that the Indian govt would not be able to put a crypto ban without international collaboration.

Jafrin is a cryptocurrency journalist/researcher fascinated by the world of decentralization. She is hopeful towards blockchain’s innovation and its potential to reshape the world for good. Currently, she is bringing out the best of cryptosphere via covering the latest ins and outs of the blockchain space.

Indian Finance Minister: Indian Govt Needs Global Support to Ban Crypto

Top Picks