Cryptocurrencies should be treated as assets or commodities in India and are subject to existing exchange laws, a former senior central bank official said in comments contradicting the Reserve Bank of India’s current approach to virtual coins.
Once cryptocurrencies are accepted, commodity exchange rules may apply and the coins can be used to pay for goods and services, R. Gandhi, former deputy governor of the Reserve Bank of India, said at an event hosted by the Internet and Mobile Association. or India on Tuesday. “Then people can automatically start buying, selling and holding.”
Gandhi’s comments come as the government of Narendra Modi, which had initially proposed a ban on such transactions, is finalizing regulations for cryptocurrencies. Although the RBI has repeatedly expressed concerns to the government about cryptocurrencies, trading in the assets rose to $6.6 billion in May, compared to $923 million in April 2020, according to Chainalysis.
Regulators should have access to information about how many cryptocurrencies individuals have for tax purposes and this should be shared with the exchanges, Gandhi said.