Sundara Rajan, chief compliance officer at CoinSwitch
Ever since it was reported that the government is planning to introduce a new cryptocurrency bill during the winter session, there has been a lot of misinformation going around. This led to a lot of initial panic selling, but things seem to have cooled down a bit. However, a lot of crypto investors and traders in India are worried about the future of crypto in the country.
To make things simpler, CoinSwitch recently hosted some very helpful 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 people make informed trading and investment decisions when it comes to cryptocurrencies.
Sundara Rajan, chief compliance officer at CoinSwitch, spoke about the proposed crypto bill and other details around regulation that will be useful to crypto investors and traders in India. Below, we’ll explain some of the key details that were shared during the YouTube live session.
Are we past the ‘crypto will be banned’ story?
One of the biggest questions on everyone’s mind right now is – will India really ban cryptocurrencies? To put an end to the rumours, Rajan said we can safely say that India is not going to ban cryptocurrencies outright. He talks about recent developments and the official statements that have been published publicly and internally with stakeholders. The government is mainly concerned about the misuse of cryptocurrencies and wants to avoid it. Additionally, the government seems to be looking at ways to regulate cryptocurrencies.
Taxing Cryptocurrencies In The News
To clarify an important question about crypto taxation in India, Rajan referenced a recent statement by revenue secretary Tarun Bajaj where he discussed how people should pay taxes on interest capital based on their cryptocurrency profits. Tax laws could also be changed to introduce TDS on crypto income. If the government is planning to impose these taxes, it means that they will allow the buying and selling of cryptocurrencies.
What about those who read between the lines of the invoice description?
We don’t really know much about the proposed crypto bill beyond the main headline. But people are still trying to make assumptions about anything that is being made public or discussed online, leading to a lot of confusion. To clarify things, Rajan said that currently no one knows about the contents of this proposed cryptocurrency bill.
He added that everything is still part of speculation. The crypto market in India initially crashed because of a lot of panic selling due to unverified news. Rajan added, “A lot of crypto investors in India have lost large amounts of money due to this. He also said that these speculations should end until we have some verified news and details about the proposed bill.
Rajan also said that CoinSwitch believes this proposed bill on crypto will bring some kind of positive development to the industry. It doesn’t seem like the government will ban cryptocurrencies outright. We don’t know what the bill is for at the moment, but we hope the bill looks good and our business goes on as usual. We are not changing anything based on these ongoing speculations.
How to limit money laundering in cryptocurrencies?
Skeptics believe that cryptocurrencies are the basis for money laundering. One of the key issues for the government is whether cryptocurrencies will lead to an increase in money laundering cases across the country. To explain things, Rajan responded by saying that money laundering has happened across various channels and is still going on.
But you can’t close a content class just because it could be misused. Some people can use cryptocurrency to launder money and we have to figure out how to prevent that from happening. However, money laundering can occur across many asset classes. Cryptocurrency regulation can help curb money laundering in the long run.
Rajan added that strong KYC, monitoring of transactions and avoiding cash transactions are some of the ways to avoid money laundering with cryptocurrencies. He said that it is wrong to say money laundering only happens with cryptocurrencies. Banning cryptocurrencies may not be a one-stop solution to this problem.
How should investors react?
A lot of crypto investors and traders in India are worried about their investments and they want to know how they should execute their trades. Rajan is clear on one thing – avoid panic selling. He said people should stop making buy or sell decisions based on half-baked news or reports. Once the bill is in place and the government regulates the industry, you can continue with your investments and transactions. Avoid panic buying or selling at all costs, he added.
What makes CoinSwitch’s KYC process reliable and secure?
CoinSwitch has a robust KYC process that will be further improved in the future, Rajan said. The company is also actively monitoring transactions to avoid potential scams. Rajan said this will remain an ongoing process and we will continue to work on it without compromise. This is a win-win for both the company and the user.
Rajan ended the live session by reinforcing his belief that the government will not introduce a total ban on cryptocurrencies. He said he hopes there will be a positive development in the proposed bill and that it is only a matter of time before we know its actual content. For traders and investors, Rajan warned people to avoid panic buying or selling until reliable information is available.
(Disclaimer: Coinswitch is an advertiser on the NDTV Network)
