Here’s How The Country Of India Needs To Move Ahead With Its Limbo Crypto Regulations
Here’s How India Needs To Move Ahead With Its Crypto Regulations…
It’s no secret that India is one of the most disjointed countries when it comes to setting up feasible a long-term crypto regulatory framework. For example, just over a year back, the nation’s primary financial body the ‘Reserve Bank of India’ issued a circular stating that banks operating within the country are required to “abstain” from participating in any crypto related activities.
However, this vague stance is now causing distress to many Indian bitcoin users who are unsure of whether to report their crypto profits in their upcoming tax reports— since it would prove that they were using RBI-regulated banks secretly for facilitating their crypto transactions despite the above-stated ban.
Alternatively, if they refrain from declaring their earnings, such individuals would be in direct violation of the country’s capital taxation laws (and thus be subject to various criminal penalties).
How are People Tackling This Issue?
As per India’s existing financial framework, cryptocurrency users have no means of gaining a foothold within the nation’s fiat system. This is because all of the private/public banking institutions within the SE Asian powerhouse are required to adhere to the guidelines set-up by the RBI.
As a result of this, most crypto transactions that take place within the country are cash-settled— thus leaving the RBI with little to no means of detecting the presence of such tx’s.
However, in a recent interview with some Indian traders (who wish to remain unnamed), many people are making use of fake invoices as well as other internet banking avenues to conceal their crypto activities.
Lastly, it should be pointed out that as things stand, the Supreme Court of India is currently hearing a case that is looking to challenge the aforementioned RBI ban. In this regard, the nation’s apex court has ordered the central bank to draft and present a “crypto regulation proposal” by the end of this month.
What Can The Average Citizen Do To Influence Crypto Regulations In India?
1. File RTI Requests: According to Nischal Shetty, CEO of local-exchange Wazirx, Indian crypto enthusiasts can help spread awareness about alt-assets by filing RTI’s. In his opinion, this will allow everyday citizens to post questions to various government-based regulatory bodies (including the RBI) about the legitimacy of the aforementioned ban.
To be even more specific, over the course of the past few months, Shetty has been urging his Twitter followers to file RTI requests that ask the central bank the following questions:
- “Did you have any solid data that led to implementing banking ban on crypto transactions?”
- “Do you have any data to prove banking ban on crypto transactions has led to a reduction in money laundering?”
2. Form Groups to Educate Oneself: Another way of positively influencing the Indian crypto scene is by participating in crypto-related meetups that regularly take place in big cities such as Delhi, Bangalore, Hyderabad, and Mumbai.
In this regard, it should be noted that the next major crypto roadshow is set to take place on the 30th of this month (in Bangalore).
3. Spread the Word: According to Shetty, more and more individuals need to start educating themselves so as to spread “real information” regarding cryptocurrencies to the masses.
“Blog about why the banking ban in India is shortsighted and hurting innovation in the Indian crypto ecosystem. All in all, the more Indians and Indian media cover the fact that banking ban by RBI was done without any data, the better our chances of reviving crypto in India.”