Gandhi urges India to accept cryptocurrency
Former Deputy Governor of the Reserve Bank of India (RBI) Rama Subramaniam Gandhi said that digital assets must be adopted to develop the country’s economy.
Speaking at the first virtual conference HODL ’21 hosted by the Blockchain and Crypto asset Council (BACC) of the Internet and Mobile Communications Association of India (IAMAI) on September 7, Gandhi said that cryptocurrency can be used for payments in economic activities, but he sees them more like class assets.
The central bank banned all commercial banks from allowing their clients to make cryptocurrency-related transactions in 2018, however, this decision was overturned by the Supreme Court in February 2020.
Gandhi worked at the central bank from 2014 to 2017. He argues that cryptocurrency should be treated as an asset or commodity and taxed accordingly.
Developing a regulatory framework and treating it as such will enable Indians to invest in and own digital assets. He added that if assets were mined rather than bought, they should be subject to capital gains tax.
In his opinion, in the absence of regulation rules, cryptocurrencies can be used to commit crimes.
At the moment, in India, the regulatory framework for cryptocurrencies is still under development. Just recently, lawmakers decided to revise one of the laws on digital assets.