R. Gandhi Former Reserve Bank of India (RBI) deputy governor set the stage on Tuesday for crypto to be treated and regulated as a distinct asset.
R Gandhi the former Reserve Bank of India (RBI) deputy governor R Gandhi on Tuesday created a situation for treating and regulating crypto as a different asset class with vision which would let governments from across the world to deal with illegal activities linked with virtual currencies. After a few debates and arguments over this matter and now people have come to fully understand that crypto cannot be a currency as the fundamental should be a legal tender. In this case it is imperative to not compel a crypto currency to be accepted by another as it is not a legal tender.
The basic plan between the policymakers is that it should be considered as an asset, not as a currency, not as a payment instrument or a financial instrument as there is no clear identified issuer. “So, once we have an understanding and acceptance, that it is an asset (not a currency), then it becomes relatively little easier to have regulation around it,” he said at a virtual event which was organised by internet and Mobile Association of India (IAMAI) and Blockchain & Crypto assets Council (BACC). He said that there might be a chance for using this virtual asset for criminal activity if there wont be a regulation and there are plenty of scenarios proving that.
“So that is where the real difficulty comes in vis-à-vis a crypto assets as there is a possibility, and not a really possibility, there has been quite an anecdotal evidence that crypto assets have been utilised for increasingly, or in large scale for illegal activities like ransom attacks etc,” he said. The basis of the origination of crypto is from some 12 years back as an asset which cannot be traced and taxed. “So the very idea of crypto was that it should be anonymous, independent and cannot be taxed or tracked, so as I said every society will have its own rules, which expects compliance by all its members and it penalises non-compliance,” he said.