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Cryptocurrency can become indirect legal tender if allowed as an asset: former member of Pmeac

The government’s brief description of the cryptocurrency bill in the winter session parliamentary bulletin has worried the fledgling cryptocurrency trading community as it talks about banning all private cryptocurrencies but by allowing certain exceptions.

In an interview with CNBC-TV18Former PMEAC member Anantha Nageswaran said that if cryptocurrency is allowed as an asset, it can be exchanged for indirect legal tender.

“If you think of cryptocurrency as an asset, you can exchange it for cash and to that extent it becomes indirect legal tender. So if it is allowed as an asset it can be exchanged for legal tender, ”Nageswaran said.

Pronab Sen, a former chief statistician, said that by banning cryptocurrencies you are moving trading to an offshore location: “I find it very hard to imagine how trading in cryptocurrencies can be stopped. ban trading in India but the world of crypto is so all you do is move trading to an offshore site. If you really want to be effective in terms of banning cryptocurrencies you need to work on the foreign exchange market. But that can end up taking some pretty regressive measures in terms of our foreign exchange laws. “

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Sathvik Vishwanath, co-founder and CEO of Unocoin, said that transactions on Bitcoin or any other blockchain occur on the internet and therefore trying to ban it is a futile effort.

“Transactions on Bitcoin or any other blockchain happen on the internet. So as long as someone has access to the internet, it’s technically impossible for anyone to stop it. So trying to ban it is a very futile effort. “

Sumit Gupta, Co-Founder and CEO of CoinDCX said all crypto exchanges in India have proper KYC standards in place and regulation is the right way to go.

“All crypto exchanges in India have proper KYC standards in place which are similar to what other financial hunches follow. So every exchange already has these processes defined and for any user who buys and sells from these exchanges , we have their appropriate data and the data can be shared very well with the authorities if they want to see if people have paid taxes on it, ”Gupta said.

“The regulations will also allow these exchanges to have standardized guidelines and it will also help the government understand who bought what value, are they paying taxes on it and if someone is not doing the right business they can be held back. So regulation will prevent all bad actors from being part of the ecosystem and only allow innovation. So I think regulation is the right way to go, “he added.

Watch the video for the whole conversation.


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