Sundar Rajan, Chief Compliance Officer at CoinSwitch
There has been a lot of misinformation floating around ever since the news broke that the government was planning to introduce a new cryptocurrency bill during the winter session. This caused a lot of panic initially, but things seem to have cooled down a bit. However, a lot of cryptocurrency traders and investors in India are worried about the future of crypto in the country.
To make things simple, CoinSwitch recently held some highly useful sessions on YouTube. The goal 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 to make informed trading and investment decisions when it comes to cryptocurrencies.
CoinSwitch Chief Compliance Officer Sundar Rajan spoke about the proposed crypto bill and other details of the regulation that would be useful to cryptocurrency investors and traders in India. Below, we’ll go over some of the key details shared during the live YouTube session.
Have We Got Over the ‘Crypto Will Ban’ Narrative?
One of the biggest questions on everyone’s mind right now is – will India really ban crypto? To put an end to the rumours, Rajan said that we can safely say that India will not ban crypto completely. He talked about recent developments and official statements that have been issued publicly and internally with stakeholders. The government is primarily concerned about the misuse of crypto, and wants to avoid it. In addition, the government is looking at ways to regulate crypto.
news amid crypto taxation
To clarify an important question on crypto taxation in India, Rajan cited a recent statement by Revenue Secretary Tarun Bajaj, where he discussed how people should pay tax on capital gains based on their cryptocurrency profits. . Tax laws can also be changed to levy TDS on crypto capital gains. If the government plans to introduce these taxes, it means that they will allow the buying and selling of cryptocurrencies.
What about the people reading between the lines of the bill description?
We really don’t know much about the proposed cryptocurrency bill other than the main title. But people are still trying to make assumptions about whatever is being made public or discussed online, which is causing a lot of panic. To clarify things, Rajan said that currently no one knows about the contents of this proposed crypto bill.
Everything is still part of speculation, he added. The crypto market in India initially crashed as unverified news caused a lot of panic. Rajan said that a lot of crypto investors in India lost a good chunk of their money due to this. He also said that these speculations should end till we have some verified news and details about the proposed bill.
Rajan also said that CoinSwitch believes that this proposed bill on cryptocurrencies will bring some positive developments to the industry. It doesn’t look like the government will ban crypto entirely. We don’t know what’s on the bill right now, but we’re hoping the bill will be positive and our business is going on as usual. We are not changing anything based on these ongoing speculations.
How can money laundering in crypto be curbed?
Skeptics believe that crypto is a breeding ground for money laundering. One of the major issues for the government is whether crypto will lead to a rise in money laundering cases across the country. To explain things, Rajan replied that money laundering has happened across various channels, and it continues.
But you cannot close an asset class just because it may be misused. Some people may use crypto to launder money, and we have to figure out a way to prevent that from happening. However, money laundering can occur in a wide range of assets. Regulation in crypto can help prevent money laundering in the long run.
Rajan further added that strong KYC, transaction monitoring, and avoiding cash transactions are some of the ways to avoid money laundering with crypto. He added that it is wrong to say that money laundering is happening only with cryptocurrencies. Banning crypto may not be the only solution to this problem.
How should investors react?
A lot of cryptocurrency investors and traders in India are concerned about their investments, and they want to know how they should go about their transactions. Rajan is clear about one thing – avoid panic selling. He said that everyone should stop making buy-sell decisions on the basis of half-baked news or news. Once the bill is out, and the government brings in regulation for the industry, you can move on to your investments and business. He said that at all costs avoid panic buying or selling.
What makes CoinSwitch’s KYC process reliable and secure?
Rajan added that CoinSwitch has a robust KYC process which will be further improved in the future. The company is also actively monitoring transactions to avoid potential scams. Rajan said that this will be an ongoing process and we will continue to work on it without compromising. This is a win-win for both the company and its users.
Rajan concluded the live session by further reinforcing his belief that the government would not impose a complete ban on crypto. He said he expects the proposed bill to lead to positive developments, and it is only a matter of time before we know the actual contents of the bill. For traders and investors, Rajan warned everyone to avoid panic buying or selling until reliable information is available.
(Disclaimer: Coinswitch is an advertiser on the NDTV network)
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