In order to adapt to the changing needs of the economy, the responsibility of regulating the cryptocurrencies can be taken by Reserve Bank of India. Comment (200 Words)
Refer - Business Line
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IAS Parliament 3 years
KEY POINTS
The price of Bitcoin rose 68 per cent in the first two months of 2021, following an over 300 per cent rally in 2020. The RBI is concerned about money laundering and terror financing through cryptocurrencies.
Impossible to ban
· The basic structure of cryptocurrencies makes it downright impossible for any regulator to ban their creation or exchange.
· It is not possible to pin down the ownership of the copyright on any one individual or company.
· Closing down domestic trading platforms for cryptocurrencies is likely to be equally futile since it is quite easy for Indians to trade on overseas platforms.
Regulation
· All those holding private cryptocurrencies on a specified date should register with the supervisory body and disclose their holdings along with their PAN numbers.
· All miners should also register with the regulator and disclose the number of coins mined on a daily basis.
· The cryptocurrency trading platforms too should be asked to register with the regulator.
· The Centre can consider taxing the gains made on these platforms, which will be an additional source of revenue for the exchequer.
Dev 3 years
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IAS Parliament 3 years
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