• Tue. Oct 3rd, 2023

Indian Government’s Senior Official Further Clarifies Crypto Status & New Regulations

Apr 9, 2021

Indian Government denies rumors of the possible crypto ban. Clarifies that the regulation has been proposed for the purposes of disclosure only and to determine whether a crypto scheme is genuine or not.

A senior official of the Indian Government has clarified that the new crypto regulations are aimed towards ensuring “disclosure”. They cannot in any way be treated as if the Government is intending to impose any so-called crypto ban, said the official.

Indian Crypto regulations required that all entities/companies, whether private or non-private, would be responsible for disclosing their crypto holdings. In addition, any profit earned or loss suffered thereon, too was to be disclosed to the relevant authority under the regulations. Furthermore, if an entity has paid any advances for crypto or that it has invested in crypto, the same will be notified to the authority as well.

Many leading Indian industries accepted the regulations open-heartedly and claimed that regulations would inculcate transparency. However, the majority had raised objections and thought that the initiative was some kind of trickery by the Government. In fact, the Government is going to impose another ban on crypto dealings and trading in India, they expected.

Thereafter, the Indian Ministry of Corporate Affairs too made a statement and endorsed that the regulations are for disclosure purposes only. The Ministry explained that there are many companies in the country that have launched digital assets’ schemes. In addition, these companies are promising investors of high returns and profits if they opt to invest in their schemes.

The Ministry said that crypto frauds are increasing in the entire world as well as in India. They want to ensure that their public is safe and invest in those companies only which are genuine. Therefore transparency and disclosure are the key factors to know whether a company is a fraud or an authentic one, said the Ministry.

It was further clarified by the Corporate Affairs Ministry that whether any ban will be imposed or not is not its prerogative. The deciding authority is the Government of India acting through the Economic Affairs Department of India. The Ministry told that only the Government and the Department have the power and authority to impose any ban. However, the Ministry told that the news of the ban is only a rumor which have been spread by the Opposition political parties.

Yet the regulations haven’t been issued officially. Instead, the regulations would first be discussed by the Parliamentarians in the next budget session. But one of the Indian Ministries was of the view that crypto trading should be completely banned in India.

Similarly, the Governor of the Reserve Bank of India too has many times criticized the crypto industry. He said that crypto trading is the root cause of the current economic crisis in India.

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