Indian authorities were proposed not to ban bitcoin

07.05.2021 |

A public organization for the development of the digital industry in India, uniting many Internet startups, proposed to the authorities of the country to recognize bitcoin and other cryptocurrencies as a digital asset. At the same time, the role of free money is proposed to be defined by the example of ordinary stocks and bonds, excluding cryptocurrencies from the payment turnover.

The appeal also speaks about examples of legal regulation, on the basis of which the regulatory framework of the industry could be built. A special place is given to the activities of online cryptocurrency exchanges. It is suggested to introduce the licensing procedure, following the example of the usual financial institutions, to oblige exchanges to carry out identification of their clients and apply the rules aimed to counteract legalization of incomes obtained by criminal means and terrorism financing.

Additionally, the Indian Tax Code must be amended. Currently, all types of digital assets are not subject to taxation, which does not allow the budget to receive additional income from the turnover of cryptocurrencies. At the same time, the organization believes that part of the regulation can be transferred to the cryptocurrency companies themselves, following the example of self-regulatory organizations in Russia. The lack of transparency in the industry currently prevents the authorities from adopting a new type of financial assets, while clear laws can contribute to the development of the industry and budget replenishment.