Finance Minister Nirmala Sitharaman on Tuesday made a strong case for regulating cryprocurrencies at the international level to reduce the risk of money laundering and terrorist financing. The non-governmental assets of crypto assets used unsecured funds, the regulation would be more stringent.
“The biggest concern I have in the private sector is that you look at unclaimed funds across borders, globally … by crossing borders, technology has no solution that will be acceptable to different kings at the same time operating in each area,” he said.
The risks involved will need to be addressed differently, because in each user’s case, the risks may vary, depending on the economy, he said during a panel discussion on the topic ‘Money on the Cross: Public Money or Digital Privacy?’ Citing an example, Sitharaman said the application of the laws and risks involved in Nigeria would be different than tourism or the rich Bahamas investment.
Global approach to regulating and understanding Cryptocurrencies
Emphasizing that control using technology will have to be so smart and precise that it should not be behind the curve. It should be a priority and this does not happen if there is a country that thinks it can handle it, he said.
“I am talking about that a lot because I think there is a great deal of risk in all countries around the world, and money laundering, and the money spent on terrorist financing,” he said. .
Regarding the tax revenue on crypto goods transactions, Sitharaman said it was a way to check the source and track but not to legitimize it. “We are not saying this is money.The 2022-23 budget proposed a 30 per cent tax on revenue from crypto assets and also set 1 per cent TDS (source tax) on sales to such legacy classes over a certain limit.”We have announced that the proceeds from the sale of these crypto assets will be taxed at 30 percent and above, there is a 1% deduction tax on the source also included in all transactions. So we will know who is buying and who is selling,” he said.
In the Central Bank Digital Currency (CBDC), he said, it will happen sometime this year RBI plans to come out with a central bank-backed digital currency using blockchain technology in 2022-23.
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