Indian Finance Minister Proposes Cryptocurrency Ban

India plans to ban cryptocurrencies. (photo: Unsplash doc)

JAKARTA – India is one of the countries that often criticizes cryptocurrencies. According to a recent report, Indian Finance Minister Nirmala Sitharaman conveyed that India's central bank is planning to ban the country's cryptocurrencies.

Sitharaman presented his views to lawmakers on Monday 18 July 2022. The Indian Finance Minister explained that the Reserve Bank of India (RBI) expressed concern regarding the “destabilizing effect of cryptocurrencies on the monetary and fiscal stability of a country,” according to the Coingape report.

In discussing the law in this sector, the Indian Minister of Finance stated that “RBI is of the view that cryptocurrencies should be banned.”

However, Sitharaman said that introducing any legislation for regulatory purposes or deciding to ban it would require significant international cooperation.

“Cryptocurrencies are by definition borderless and require international collaboration to prevent regulatory arbitrage. Therefore any legislation for regulation or prohibition can only be effective after significant international cooperation in the evaluation of risks and benefits as well as the evolution of taxonomy and common standards,” said Nirmala Sitharaman.

In early 2022, the Indian government imposed a 30% tax on crypto income. That includes the profits traders get from trading crypto. The tax is intended to reduce the trading activity of crypto investors. The policy has succeeded in reducing the volume of crypto trading in India in recent months.

It doesn't stop there, the Central Bank of India has also cut ties with the country's largest crypto exchange. In addition, the Coinbase crypto exchange, which is expanding in India, was forced to discontinue its services due to pressure from the Reserve Bank of India. The statement from the Indian Ministry of Finance caused crypto investors there to enter a zone of uncertainty.