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Former RBI Official Wants Crypto to be Treated Like an Asset

cryptoknowmics.com 08 September 2021 09:30, UTC

The former deputy governor of the Reserve Bank of India (RBI) made a case for treating cryptocurrencies as an asset class recently. The official said that such distinction would help authorities throughout the world to tackle illicit activities related to virtual assets more effectively.

RBI’s Former Deputy Governor Urges Authorities to Treat Crypto Like an Asset

"So once we have an understanding and acceptance, that it is is an asset (not a currency), then it becomes relatively little easier to have regulation around it," he stated during the event.

Pointing to India’s unclear stand on digital assets, Gandhi asserted that the gaping hole in policies was allowing people to misuse cryptocurrencies. He maintained that by treating cryptos as assets and taxing them accordingly, the government can allow Indian citizens to hold and invest in the burgeoning asset. Also, depending on the source of their origin, cryptocurrencies can be taxed differently.

“Cryptocurrencies should be paid for through normal payment channels. If they are not, it should be deemed mined, and capital gains tax must be levied. That is like voluntary disclosure.”

Gandhi also appeared apprehensive of the anonymity features of some blockchain networks and argued that all members of society have to comply with its rules.

“A state will always want to give freedom to its citizens in terms of economic transactions. It enforces contractual obligations and taxes income and gains. So, any economic activity should be amenable to these kinds of things.”

Indian Government Planning Legislation to Treat Crypto as Commodities

Earlier this month, the Indian government revealed that it was working on a draft bill to regulate virtual currencies. Sources informed local media that cryptos would be compartmentalized based on their use cases, and treated as an asset or commodity.

The legislation is also expected to define tax guidelines for such assets so that returns could be filed with transparency.

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