Have Submitted Views On Cryptocurrency Consultation Paper: RBI

SUMMARY

We have given our views to the government. Let us wait for the consultation paper to come out: RBI Governor

Earlier, Economic Affairs Secretary Ajay Seth had said that the consultation paper on cryptocurrencies is ‘fairly ready’

While the Centre has not made its stance clear on cryptocurrencies, top RBI officials have made the central bank’s opposition to cryptos very clear

Reserve Bank of India (RBI) Governor Shaktikanta Das on Wednesday (June 8) said that the central bank has submitted its views to the government regarding the consultation paper on cryptocurrencies.

“There is constant engagement between the government and the RBI on cryptocurrency (related) issues. We have given our views to the government (on consultation paper). Let us wait for the consultation paper to come out,” he said.

Das made the comments while addressing the media after the meeting of the Monetary Policy Committee, which hiked repo rate by 50 basis points.

Earlier, Economic Affairs Secretary Ajay Seth had said that the consultation paper on cryptocurrencies is ‘fairly ready’ and it would be submitted to the government soon. He also called for a global consensus on ‘some sort’ of regulation on cryptocurrencies.

The consultation paper will likely cover the regulatory framework for private cryptocurrencies in the country. While the crypto industry has high hopes from the consultation paper, top RBI officials have in the past made their opposition to the virtual currencies clear multiple times.

Earlier, Das had said that cryptocurrencies have ‘no underlying value’, while Deputy Governor T Rabi Sankar called cryptocurrencies akin to a ‘ponzi scheme’.

While the Centre has not made its stance clear on cryptocurrencies, the government has announced the taxation regime for virtual digital assets, including cryptos. In this year’s Union Budget, Finance Minister Nirmala Sitharaman announced that income from cryptocurrencies would be taxed at 30%. Besides, 1% tax deducted at source (TDS) would also be imposed on crypto transactions.

According to a report by Chainalysis, India was home to the second-largest number of crypto users in the world in 2021. It also said that the country’s crypto market registered a 641% growth between 2020 and 2021.