The former Deputy Governor of the Reserve Bank of India (RBI) has talked about the financial and crypto ecosystem of the country and declared that digital assets have to be accepted.
Rama Subramaniam Gandhi commented that crypto may be used for payments for economic activities, but that they are more of an asset class.
The regulatory situation in India continues to be vague as bills and legislation are still being pondered by leaders. Recently, the government confirmed work on a draft bill that would define crypto as commodities meaning they would be taxable. If this law is passed, crypto wouldn’t be able to be used for payments, but only for investing and trading.
Gandhi said: “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.”
He brought up the fact that if regulations aren’t put in place, crypto could be used for crimes; therefore, the government has to keep an open mind toward this sector.
“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.”