Government's stand on public and private cryptos-Clarity needed
After the government's recent announcement about banning private cryptocurrencies, several proponents of cryptos have been busy telling potential buyers that Bitcoin and Ethereum are public coins and the ban does not affect these public coins. Those who say that transactions done using these currencies can be tracked and therefore the government should allow them are either deliberately obfuscating the issue or just plain ignorant. There are any number of ways to make your transactions and identity opaque with Bitcoin or Ethereum; starting from using TOR browser, VPNs and a host of other methods. Therefore GOI must clarify their statement. All cryptos except those issued by the Central banks of any major country should be deemed private.
Buying cryptocurrency is NOT an investment. It is just a form of gambling using the volatile nature of these currencies. Can people not gamble using Forex transactions? Yes, they can, but there are a host of regulations around such trading and it is not for your average johnny. Also the extent of volatility is minuscule. But crypotos are much more easy to buy and sell. And those who buy them for other than gambling are people who want to hide their illegal transactions using the anonymity that cryptos offer. So recognising cryptos as an asset class (and taxing them) is not in the overall interest of the country because they are not traceable at all unlike other assets/ investments.
Even if RBI comes up with its own cryptocurrency, transactions and identity of the people making the transactions must be tracked similar to other banking instruments. If possible, transactions should be restricted between banks (both domestic and foreign) so that any outgo of INR can be monitored and unusual movements reported. Otherwise, it will create another parallel economy. Does GOI want that?
Buying cryptocurrency is NOT an investment. It is just a form of gambling using the volatile nature of these currencies. Can people not gamble using Forex transactions? Yes, they can, but there are a host of regulations around such trading and it is not for your average johnny. Also the extent of volatility is minuscule. But crypotos are much more easy to buy and sell. And those who buy them for other than gambling are people who want to hide their illegal transactions using the anonymity that cryptos offer. So recognising cryptos as an asset class (and taxing them) is not in the overall interest of the country because they are not traceable at all unlike other assets/ investments.
Even if RBI comes up with its own cryptocurrency, transactions and identity of the people making the transactions must be tracked similar to other banking instruments. If possible, transactions should be restricted between banks (both domestic and foreign) so that any outgo of INR can be monitored and unusual movements reported. Otherwise, it will create another parallel economy. Does GOI want that?
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Banning anything new (because you cant understand it) is not a great idea. The government should focus on building safeguards through regulation instead of being out of tune with the world. Bringing in things like terrorst funding and money laundering as reasons is lame as this happens with any currency. That is a different subject altogether.
Dec 08
If Govt. is looking through only TAX angle then they are doing big mistake. This is Modern Hawala Racket & the fund will be utilized for Terrorist's activities, Andolan , Violence's etc . in white way. If Common man understand this point & if Govt. Not knowing then it is biggest failure of Govt. In fact the Babus Run Govt. The leaders are just face for press conference. In Bharat only not more than 1 % peoples have invested in Crypto-currency, but huge amount of Black money & hence they are keeping pressure on Govt. through Influence, to regulate the same under name of TAX Income . Govt. should follow the IT Enquiry of these Account holders first.
Dec 06
GoI should enact law to ban this tax free gambling without further delay. All loop holes to avoid income tax including farm income must be plugged.
Dec 04
Government has already unduly delayed a law to regulate crypto currency and bring it in to tax structure. Better late than never
Dec 04
