Sundara Rajan, the chief compliance officer at CoinSwitch
Since the news broke that the government plans to enact a new cryptocurrency law during the winter session, a lot of misinformation has been circulating. This initially led to a lot of panic selling, but things seem to have cooled down a bit. However, many cryptocurrency traders and investors in India are concerned about the future of crypto in the country.
To make things easier, CoinSwitch recently held some very helpful sessions on YouTube. The purpose of these videos is to spread knowledge and help people understand the current status of the proposed cryptocurrency law in India. This will help everyone make informed trading and investment decisions when it comes to cryptocurrencies.
Sundara Rajan, the chief compliance officer at CoinSwitch, spoke about the proposed crypto law and other regulatory details that would be helpful to cryptocurrency investors and traders in India. Below we explain some of the key details shared during the live YouTube 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 crypto? To put an end to rumours, Rajan said we can rest assured that India will not completely ban crypto. He spoke about the recent developments and official statements released both publicly and internally with stakeholders. The government is mainly concerned about the misuse of crypto and wants to prevent this. Apart from that, the government seems to be looking at ways to regulate crypto.
Crypto Tax Amid The News
To clarify an important question about crypto taxation in India, Rajan referred to a recent statement by revenue secretary Tarun Bajaj discussing how people should pay taxes on capital gains based on their cryptocurrency gains. Tax laws can also be changed to introduce TDS on crypto capital gains. If the government plans to introduce these taxes, it means they allow the buying and selling of cryptocurrencies.
What about people who read between the lines of the account description?
We don’t really know much about the proposed cryptocurrency account apart from the main headline. But people are still trying to make assumptions about what is being made public or discussed online, leading to a lot of panic. To make things clear, Rajan said that no one is currently aware of the contents of this proposed crypto law.
Everything is still a part of speculation, he added. The crypto market in India initially crashed due to a lot of panic selling due to unverified news. Many crypto investors in India lost a large chunk of their money as a result, Rajan added. He also said that these speculations should stop until we have verified news and details about the proposed bill.
Rajan also said CoinSwitch believes this bill on cryptocurrencies will bring some kind of positive development for the industry. It doesn’t look like the government will completely ban crypto. We don’t know at this time what the bill itself is, but we hope the bill will be positive and our business will continue as normal. We don’t change anything based on these ongoing speculations.
How can money laundering be reduced in crypto?
Skeptics believe that crypto is the breeding ground for money laundering. One of the key issues for the government itself is whether crypto will lead to an increase in money laundering cases across the country. To explain things, Rajan replied by saying that the money laundering has taken place through various channels and is still happening.
But you can’t close an asset class just because it can be abused. Some people can use crypto to launder money, and we need to find a way to prevent that. However, money laundering can take place in a wide range of assets. Regulation in crypto can help curb money laundering in the long run.
Rajan further added that strong KYC, transaction monitoring and cash transaction avoidance are some of the ways to prevent crypto money laundering. He said it is wrong to say that money laundering only happens with cryptocurrencies. Banning crypto may not be the all-encompassing solution to this problem.
How should investors react?
Many cryptocurrency investors and traders in India are concerned about their investments and want to know how to handle their trades. Rajan is clear about one thing: avoid panic selling. He said everyone should stop making buy or sell decisions based on half-baked news or reports. Once the account is cleared and the government brings regulations to the industry, you can proceed 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 also actively monitors transactions to avoid potential scams. Rajan said this will remain an ongoing process and that we will continue to work on it without compromise. This is a win-win for both the company and its users.
Rajan ended the live session by further reinforcing his belief that the government will not introduce a blanket ban on crypto. He said he hopes the bill will progress positively and that it is only a matter of time before we know the actual content of this bill. As 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 DailyExpertNews Network)
