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- Published: March 23, 2022 11:52
New Delhi: Jayant Sinha, BJP MP and former Minister of Finance, on Tuesday explained Centre’s stand and approach in developing a regulatory framework for the cryptocurrency trade.
Sinha, who also chairs the Parliamentary panel on crypto trade regulations, said that government is holding wide-ranging discussions with all stakeholders and also studying evolving global situations.
He said that the Standing Committee on Finance has held consultations with the members of crypto industry and soon a white paper on regulatory framework will be brought.
Currently, the crypto currencies don’t enjoy legal status in the country but income from crypto trade has been made taxable, raising concerns from crypto users.
The Reserve Bank of India has already expressed apprehensions over mushrooming of private crypto currencies & exchanges and has announced its intent to bring its own digital currency soon.
‘Crypto evolving very quickly’
“Before we pin down regulatory framework for the cryptocurrency, we have to look at the global picture,” said Jayant Sinha in conversation with a leading TV channel.
He said that consultation regarding crypto trade, regulation & taxation are going on for long and government was also ready with white paper. But, globally, the crypto & regulations are changing at fast pace. Hence, all these aspects are being taken into perspective before pinning down a regulatory framework.
“Establishing its legal status, taxation status, regulation of used cases, everything is being taken into account. What is being implemented globally, that also needs to be vetted,” he said.
Can one offset losses in 1 crypto with another?
When questioned whether gains made on one crypto trade can be offset with losses on the other, the former Finance Minister said that there are many asset classes like Realty, Mutual Funds, stocks trade but the cyptos still don’t fall in that category. Hence, it is not an option for now.
He however added that evolving international standards & regulations are being vetted and accordingly framework will be designed.
As the head of Parliamentary panel for devising regulatory framework, Jayant Sinha has already taken inputs from crypto exchanges, block chains, industry bodies & other stakeholders.
In recent times, the mushrooming of private digital currency & crypto coins has gained immense traction among youngsters. Being prone to global turbulence, the government has been apprehensive of letting crypto trade impact young investors.