What is the Crypto Bill? CoinSwitch Compliance Officer Explains

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Sundara Rajan, Head of Compliance at CoinSwitch

Since it became known that the government was planning to introduce a new cryptocurrency bill during the winter session, there has been a lot of misinformation circulating. This led to many panic sales at the start, but things seem to have calmed down a bit. However, many cryptocurrency traders and investors in India are concerned about the future of crypto in the country.

To keep things simple, CoinSwitch recently ran some really helpful sessions on YouTube. The purpose of these videos is to spread knowledge and help people understand the current state of the cryptocurrency bill in India. This will help everyone to make informed cryptocurrency trading and investment decisions.

Sundara Rajan, Head of Compliance at CoinSwitch, spoke about the Crypto Bill and other details regarding the regulations that would be helpful to cryptocurrency 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’ narrative? One of the biggest questions on everyone’s mind right now is: will India really ban crypto? To end the rumors, Rajan said that we can say for sure that India will not ban crypto completely. He spoke about recent developments and official statements that have been released both publicly and internally with stakeholders. The government is primarily concerned about the misuse of crypto and wants to prevent it. Other than that, the government seems to be looking for ways to regulate crypto.

Taxation of Crypto Amid the News To clarify a key question about the taxation of crypto in India, Rajan referred to a recent statement by Revenue Secretary Tarun Bajaj where he explained how people should pay taxes on capital gains based on their cryptocurrency profits. Tax laws can also be changed to introduce TDS on crypto capital gains. If the government plans to introduce these taxes, it means it will allow the buying and selling of cryptocurrencies.

What about people reading between the lines of the invoice description? We don’t know much about the proposed cryptocurrency bill other than the main title. But people are still trying to make guesses from anything that is made public or discussed online, resulting in a lot of panic. To clarify matters, Rajan said that no one is currently aware of the contents of this crypto bill.

It’s all still speculation, he added. The crypto market in India initially collapsed due to a lot of panic selling due to unverified news. Many crypto investors in India have lost a good chunk of their money because of it, Rajan added. He also said that speculation should stop until we have verified information and details on the bill.

Rajan also said that CoinSwitch believes this cryptocurrency bill will bring some kind of positive development for the industry. It doesn’t appear that the government is banning crypto altogether. We do not know what is in the bill itself at this time, but we hope that the bill is positive and that our business proceeds as usual. We are not changing anything based on these ongoing speculations.

How to fight against money laundering in cryptography? Skeptics believe crypto is the breeding ground for money laundering. One of the key questions for the government itself is whether crypto will lead to an increase in money laundering cases across the country. To explain things, Rajan responded by saying that money laundering has happened through various channels and continues to take place.

But you can’t shut down an asset class just because it can be misused. Some people can use crypto to launder money, and we need to find a way to prevent that from happening. However, money laundering can involve a wide range of assets. Crypto regulations can help fight money laundering in the long run.

Rajan added that a strong KYC, transaction monitoring and avoidance of cash transactions are some of the ways to avoid money laundering with crypto. He said it was wrong to say that money laundering only happens with cryptocurrencies. Banning crypto may not be the only solution to this problem.

How Should Investors Respond? A lot of cryptocurrency investors and traders in India are worried about their investments and want to know how they should proceed with their transactions. Rajan is clear on one thing: Avoid panic sales. He said everyone should stop making buy or sell decisions based on news or half-baked reports. Once the bill is out and the government regulates the industry, you can continue to invest and trade. Avoid buying or selling in a panic 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 we will continue to work on it without compromise. This is a win-win solution for both the company and its users.

Rajan ended the live session by reinforcing his belief that the government will not introduce a blanket crypto ban. He said he hopes there will be a positive development in the proposed bill, and it is only a matter of time before we know the actual content of this bill. Regarding traders and investors, Rajan warned everyone to avoid panicking buying or selling until reliable information is available.

(Disclaimer: Coinswitch is an advertiser on the NDTV network)

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