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Crypto Is Completely Decentralised, Hence Difficult To Regulate: SEBI

SEBI has said that the government should appoint an authority to monitor cryptocurrencies, so that legal action can be taken against the wrongdoers

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The Securities and Exchange Board of India (SEBI) has made it clear that crypto is completely decentralised, so it is difficult to regulate it. SEBI said it on 6 June in response to one year of parliamentary committee. The responsibility of monitoring financial matters in India lies with the Reserve Bank of India and SEBI.

The good thing for the crypto community is that SEBI has not sought a ban on it. SEBI has said that the government should appoint an authority to monitor cryptocurrencies, so that legal action can be taken against the wrongdoers. SEBI may get its responsibility in the coming days.

In December 2021, several reports indicated that the Indian government may give the responsibility of monitoring crypto assets to SEBI. In response to the questions of the Parliamentary Committee on Financial Affairs, SEBI had said that different authorities have been constituted to oversee different institutions. Similarly, the government can set up an institution to monitor cryptocurrencies. Digital assets do not come under the purview of any specific law.

SEBI says that on the one hand digital assets do not come under the purview of any specific law. At the same time, the consumer should get protection under the Consumer Protection Act 2019. The debate on the regulation of crypto in India has been going on for the last one year. For the first time in the budget session, it seemed that the government could bring a law to regulate crypto. Earlier in the year 2017, the Government of India had banned the import of crypto mining machine ASIC.

In December last year, it seemed that a law could come in this regard in the Parliament, but till date nothing like this has happened. Therefore, questions were raised many times on the intention of the government that if the government does not bring a law, then how will it ban crypto.

In the midst of these questions, when the Finance Minister presented the budget in the year 2022, she announced the imposition of tax on the income from digital assets.

Finance Minister Nirmala Sitharaman announced a tax of 30 per cent on capital gains arising from trading of crypto. Along with this, 1 per cent TDS was also imposed on it.


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