Sundara Rajan, Chief Compliance Officer, CoinSwitch
Since it emerged that the government plans to introduce a new cryptocurrency bill during the winter session, there has been a lot of misinformation floating around. This sparked a lot of panic sales initially, but things seem to have calmed down a bit. However, many cryptocurrency traders and investors in India are concerned about the future of cryptocurrencies in the country.
To keep things simple, CoinSwitch recently held some very useful sessions on YouTube. The aim of these videos is to spread knowledge and help people understand the current status of the proposed cryptocurrency bill in India. This will help everyone make informed trading and investment decisions when it comes to cryptocurrencies.
Sundara Rajan, Chief Compliance Officer at CoinSwitch, spoke about the proposed crypto bill and other details about the regulation that would be helpful to cryptocurrency investors and traders in India. Below we will explain some of the key details that were shared during the live YouTube session.
Have we gotten over the ‘cryptocurrencies will be banned’ narrative?
One of the biggest questions on everyone’s mind right now is: Will India really ban cryptocurrencies? To put an end to the rumors, Rajan said that we can safely say that India will not ban cryptocurrencies altogether. He spoke about recent developments and official statements that have been made public and internally with stakeholders. The government is primarily concerned about the misuse of cryptocurrencies and wants to prevent it. Other than that, the government seems to be looking for ways to regulate cryptocurrencies.
Taxes on cryptocurrencies amid the news
To clarify a key question about cryptocurrency taxes in India, Rajan referred to a recent statement from Finance Secretary Tarun Bajaj in which he discussed how people should pay capital gains taxes based on their earnings in cryptocurrencies. Tax laws can also be changed to introduce TDS on crypto capital gains. If the government plans to introduce these taxes, it means that they will allow the purchase and sale of cryptocurrencies.
What about the people who read between the lines of the bill’s description?
We don’t really know much about the proposed cryptocurrency bill other than the main headline. But people are still trying to make assumptions from what is made public or discussed online, which creates a lot of panic. To clarify matters, Rajan said that currently no one knows about the content of this encryption bill.
Everything is still part of speculation, he added. The cryptocurrency market in India initially collapsed due to a large number of panic sales due to unverified news. Many cryptocurrency investors in India lost a good chunk of their money because of this, Rajan added. He also said that these speculations should end until we have some verified news and details on the proposed bill.
Rajan also said that CoinSwitch believes that this proposed cryptocurrency bill will bring some kind of positive development for the industry. It doesn’t look like the government is going to ban cryptocurrencies entirely. We do not know what the bill itself contains, but we hope it is positive and our business continues as usual. We will not change anything based on these ongoing speculations.
How can crypto money laundering be stopped?
Skeptics believe that cryptocurrencies are the breeding ground for money laundering. One of the key questions for the government itself is whether crypto will lead to an increase in money laundering cases across the country. To explain things, Rajan responded by saying that money laundering has occurred through various channels and continues to occur.
But you can’t shut down an asset class just because it might be misused. Some people can use crypto to launder money, and we have to find a way to prevent that from happening. However, money laundering can occur on a wide range of assets. Regulation in crypto can help curb money laundering in the long run.
Rajan further added that strong KYC, monitoring transactions, and avoiding cash transactions are some of the ways to avoid crypto money laundering. He said that it is wrong to say that money laundering only happens with cryptocurrencies. Banning cryptocurrencies may not be the comprehensive solution to this problem.
How should investors react?
Many cryptocurrency investors and traders in India are concerned about their investments and want to know how they should transact. Rajan is clear about one thing: avoid panic selling. He said that everyone should stop making buy or sell decisions based on news or half-reports. Once the bill is published and the government brings regulation to the industry, you can proceed with your investments and operations. Avoid panic by buying or selling at all costs, he added.
What Makes the CoinSwitch KYC Process Reliable and Safe?
CoinSwitch has a robust KYC process that will be further improved in the future, Rajan said. The company is also actively monitoring transactions to avoid potential scams. Rajan said this will remain an ongoing process and that we will continue to work on it without compromise. This is beneficial for both the company and its users.
Rajan ended the live session further cementing his belief that the government will not introduce a total ban on cryptocurrencies. He said he hopes there will be a positive development in the proposed bill, and it is only a matter of time before we know the actual content of this bill. As for traders and investors, Rajan warned everyone to avoid buying or selling in a panic until reliable information is available.
(Disclaimer: Coinswitch is an advertiser on the NDTV network)
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