India’s IT Minister Rajeev Chandrasekhar recently spoke about the upcoming Digital India Act and its effect on the digital currency sector at the Times Network India Digital Fest event. In his speech, he made it clear that the government is taking a slow and steady approach towards digital currencies and that it will not be rushing into anything without proper regulation. He noted that as cryptocurrencies intersect with macroeconomy and financial sector, additional measures must be taken in order to regulate it properly.

For this, the Minister voiced his support for the actions of the Reserve Bank of India (RBI) in navigating the economy through difficult and uncertain times. India also has legal status for digital currencies under FEMA once they are traded through an authorized route. Yet, the country has faced significant criticism regarding its tax measures of 30% on digital asset trading, as well as a 1% TDS.

Despite these negative effects, India still has plans to pursue a global regulatory framework under its G20 presidency. These plans involve collaboration with the International Monetary Fund (IMF) and other financial agencies for a standard operating procedure across all nations. This meeting between the G20 governors and finance ministers in February showed positive steps towards fractionalizing regulatory arbitrage and cryptoization.

Overall, India’s initial fear of rushing into decisions regarding digital currency regulation can lead to much better standards in the future. It is important to take the necessary steps in ensuring security and providing protection, while also encouraging blockchain development and crypto trading on an authorized route, allowing India to join the digitalized economy.



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