Chief Economic Advisor considers stringent regulations necessary for crypto segment

Chief Economic Adviser V Anantha Nageswaran has said that since there is no centralized regulatory authority for the crypto segment, it is similar to the territory occupied by Caribbean pirates. Nageswaran recognizes that cryptocurrencies like normal currencies do not meet the basic requirements of store value, mass acceptability and units of account.

“With cryptocurrencies becoming more decentralized and the absence of any centralized regulatory authority, it is tantamount to an area of ​​no control,” he said. Regarding Decentralized Finance (DeFI), he said, “It is being considered innovation but I would not make any conclusions about it being innovative or making a big difference in a positive way.” Nageswaran said that as an alternative to normal currency cryptocurrencies needs to fulfill multiple objectives. He said that he is not very excited about cryptocurrencies.

The central government has taken steps to regulate cryptocurrencies. Economic Affairs Secretary Ajay Seth recently told that the government has prepared a consultation paper on cryptocurrencies. The Reserve Bank of India (RBI) had last year called for a ban on cryptocurrencies. However, the government says that it will not ban this segment completely.

In this year’s budget, the government had announced a 30 percent tax on profits earned from trading cryptocurrencies. On profit from digital assets tax Cryptocurrency trading volumes have dropped significantly since the implementation. Apart from this, TDS of one percent will also have to be paid on every crypto transaction from July 1. Taxes on crypto trading were announced in the budget in February and since then this issue has become a cause of controversy among people in the crypto industry. Many industry experts and crypto enthusiasts have praised the government’s approach to regulating this segment rather than banning it, while others believe that the tax on profits from crypto should be reduced.

(This news has not been edited by NDTV team. It has been published directly from Syndicate feed.)<!–

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