The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 has been tasked to develop a framework for the creation of the official digital currency to be issued by the Reserve Bank of India. Most analysts believe that until the hurdles are cleared, the viability of cryptocurrency is quite weak. More government laws and clearances are vital to make cryptocurrency a legal tender.<\/p>\n\n\n\n
Analysts have raised concerns that there can be a more choppy trading session for Bitcoin with trade forecasting lower volumes. CoinDCX Research Team in a research report said that the trading start of current fiscal year has been “relatively monotonous”.<\/p>\n\n\n\n
Dr. Sujata Seshadrinathan Director, Basiz Fund Services, says, “While there is no ban on Crypto, Bitcoin will not be allowed. This is probably an outcome of risks of illegal transfers and non-desirable activities which are being duly monitored by enforcement authorities,”<\/p>\n\n\n\n Internationally, experts say that Cryptocurrency is being looked at as a new-age investment tool which tends to attract most millennials irrespective of region. For Indian investors however, the future looks uncertain till there is more clarity from the union government on how they will be regulated in India.<\/p>\n\n\n\n Back in 2018, the Reserve Bank of India (RBI) had barred commercial banks and financial institutions from carrying out any dealings in cryptocurrency. But within 2020 this ban was upturned by the Supreme Court of India. Even RBI Governor Shaktikanta Das had expressed his worries on dealings in private cryptocurrencies without any regulatory framework in place. This could lead to many unwired turnouts thus leaving a loophole for any kind of illegal transactions or activities one being of utmost concern – terror financing.<\/p>\n\n\n\n Responding to The Voices<\/em>, Sharat Chandra, Blockchain & Emerging Tech Evangelist says, “Government has a huge task of balancing innovation and regulation and it will define the future of the digital assets ecosystem in India. The border-less and decentralized nature of technology requires global collaboration and India should adopt an agile approach towards legislation of Crypto assets. An innovation friendly regulatory framework can position India as the global Crypto and blockchain hub. This is India\u2019s moment to lead the narrative on blockchain and Web3.0 technologies.\u201d<\/p>\n\n\n\n El Salvador is the only country to recognize bitcoin as a legal tender and also has a firm plan to start a Bitcoin City. The \u201cBitcoin City\u201d, backed by one billion Bitcoin bonds, hailed as the \u201cFinancial Infrastructure for the Future\u201d, can be a trendsetter for smart cities and sustainable governance for countries across the world. The Bitcoin City will be free of income, property and capital gains taxes. The El Salvador President intends to achieve self-sufficiency for this new city by buying $500 million Bitcoin and liquidating it on a quarterly basis after 5 years. The note is expected to generate additional capital that could be used to fund finance costs and infrastructure development of the city. The economics of the bitcoin bond plays pretty well into the narrative. The 6.5% coupon rate of the bitcoin bond is competitive vis-a-vis other yield generating financial instruments.<\/p>\n\n\n\n \u201cCountries like Paraguay are in the process of bringing in legislation to accord legal status to cryptocurrencies. The success of El Salvador might urge the sovereign nations to change their stance on Crypto as far as payments is concerned.” Sharat Chandra adds.<\/p>\n\n\n\n According to Arjun Khazanchi, Co-founder and CLO, Rooba Finance, \u201cCryptos are already regulated in terms of supply and transfer of value. However, this is not sufficient for some countries and the citizens are needed to abide by the law of the land. India is one of the highly regulated countries, the regulations are badly needed here for Crypto to become mainstream. Else it will continue to be just for the niche investors and as a speculative instrument. It would be a challenge for mass adoption and the trust issues continue to exist.\u201d<\/p>\n\n\n\n Reshmi Majumdar, a young investor sharing her view on the cryptocurrency says, \u201cInvestment in this kind of platform is (cryptocurrency) is appealing but what does the long term aspect stand? When it comes to traditional investment format the trust-building is a major endeavor which needs to be done.\u201d With the recent introduction of Cryptocurrency and Regulation of Official Digital Currency Bill, the hurdle seems to be ever-growing.<\/p>\n\n\n\n Sources and analysts aware of developments claim that a regular flow of cryptocurrency can only be done once formal government guidance and framework are in place.<\/p>\n\n\n\n Edited by: V.Prem Shankar<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":" When the budget session of the Indian Parliament commences on January 31, 2022, investors will be waiting with bated breath to know what the session will have in store for the future of Cryptocurrency in the country. Many investors and experts The Voices spoke to said that they are optimistic that some regulation may be considered in<\/p>\n","protected":false},"author":257,"featured_media":15068,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[66,596],"tags":[483,480,1051,100,1024,224],"ppma_author":[1002],"class_list":{"0":"post-14735","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"category-world-environment","9":"tag-ignousojnms","10":"tag-thevoices","11":"tag-thevoicesignou-2","12":"tag-business","13":"tag-crypto-currency","14":"tag-india"},"aioseo_notices":[],"yoast_head":"\n![\"\"](\"https:\/\/medialit.in\/thevoices\/wp-content\/uploads\/2022\/01\/Tax-implications-for-Investing-in-Cryptocurrency-in-India.jpg\")
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