Some major countries around the world are talking about regulating the crypto currency, and many legislations are already in the pipeline.So we thought will give your round up of what is happening around the world where it comes to regulation and what can India lawn and picks, which becomes a topic of discussion with the guests.But let’s begin with European unity.On 30th of June, the European Parliament agreed upon a new law to regulate crypto currencies.The markets in crypto assets law that Micah with this, you will bring crypto assets, crypto assets issuers and crypto asset service providers under regulatory framework for the first time.Remember the bills? Still not long.The main features of the law have been agreed to in principle by its lead negotiators, but they have yet to publish a full text.While the text is available, governments and lawmakers at the European Parliament will have to make sure the demands were met.
That will happen to a series of votes, and under the new rules, stable coins like Quetta and circles U S.D.
C.Will be required to maintain ample reserves to meet redemption requests in the event of March for jobs Now.UK Consultation Paper is published this Thursday and the UK LA Commission Assassin Eri Independent Body, tasked with reviewing and updating the law, wants to extend the country’s property rules to cover crypto and non fungible tokens.And several enthusiast a happy about the commission steers clear of cryptocurrencies that function simply as means of payment.Remember here in India as well.A lot of investors and enthusiasm also been pointing out similar sort of points that we don’t want it as a mean of payment but classify it as a as a class.
But now, coming back to this Storey focuses on working on the trade value of the digital assets.A UK law commission sees crypto as a new type of property.Parliamentarians in UK are also planning to introduce rules for using stable coins.The rules are part of a long awaited financial services and markets bill which is aimed at strengthening the UK financial system post Brexit So there is no blanket ban on CRYPTOCURRENCIES in the UK, but it also doesn’t have a financial regulatory regime for crypto assets.Shot in May 2022 when terror us he crashed, Bank of England published a consultation paper that outlines a strategy reduce risks for investors holding stable Let’s move on to Singapore now.Singapore is considered to be a Crip know friendly nation.But remember three Arrows Capital’s, a trip to hedge fund company which recently collapsed and Zip, Mex and exchange that halt and withdrawals are on.Singapore based a Singapore sourcing Over wants to tighten laws for crypto players in the country.
The Central Bank of Singapore and the Monetary Authority of Singapore, which is have planned to come up with a new set of regulations for Bitcoin, other crypto currencies and digital assets.
These will take enforcement action if if any entity is found to be conducted conducting illegal activities.The Central Bank of Singapore will also release plans to make the country a hub for big coin and other digital assets.In the end will talk about the US In March 2022 President Biden issued an executive order calling on the government to examine the wrists and benefits of crypto assets.Major focus of this executive order was to prohibit illegal crypto activities as a result of this order, the U.S.
Treasury Department recently published a fact sheet outlining how it could work with foreign regulators to address it.Cryptocurrency sector.
However, legislation being drafted by Democratic and Republican leaders of the U S U S House Financial Services Committee will not be considered by the panel until September.And this is what Reuters sources have confirmed and also told you this in today’s big storeys as well.So consideration of a stable coin regulation bill is delayed for several weeks.
So will now get into a discussion which we have a guest with us of Pretty Khurana and Ajit Khurana Pretty Kuran is director of advocation regulation Clear.
Ajit Khurana founder If lexical a very warm welcome to both a few Mr Ajit Khurana, I would I would begin with you.You know, you’ve heard all these countries doing several different things.What can be picked as a nation as as India is also on the on a similar path.So as a nation we have to decide the country’s priorities.
We have a local Seema, which governs how currencies moved abroad.So to try to mimic a country like Singapore or USA, which actually has relatively free flow of its currency across its border will not work for us.
I think the easiest thing given that we have so many constituents who are not necessarily working in conjunction with each other issue do two parts Number one recognised this and classified.I think the best example is from Micah.Instead of classifying into 5, 10 15 types, non fungible, fungible, they said, Basically, utility token money like token, that is E money token and asset linked on simply this.
Frankly, I think this is beautiful.All clarification comes in.Second thing to do is that instead of waiting for an all my C law to come, which the Parliament will enact, let us look at the existing law such as the RBI action be act P m, la Fiamma and other such maybe income Tax act has already been done and just get them to recognise their existence of Once you do this, we are on the past to being at par with some of the best regulations around the world.Sure and pretty.You know, we’ve of course, listed all these regulations which are in a process in other countries, other any India specific regulations as few have been pointed by Mr Khurana hear other in India a specific regulation that you think we immediately need to work on? It’s so even though now the Income tax Act has a mention of virtual digital assets, yet it’s not clear enough.
So, you know, first day, there has been a lot of confusion.Whether this gives it legal, standing or not, all of that needs to be sorted.RBI’s discussion paper, which is being talked about.It’s not there yet.Essentially whatever Northern put together it is, you know, it has several grey areas.They want an immediate basis.
Perhaps in the current financial year, they need to classify a been clarify lord of Things precisely in the sense of hope to estimate the cost of acquisition, for example.So it’s not very clear what exactly constitutes cost of acquisition.Morton could be included.And let’s not be for you know, things to go to courts and then, you know, paid for jurisprudence and all of these things to come through or us to develop an understanding of what these things are.
Then, essentially, you know, if you look at the US and UK laws so far, they decided to treat these as capital assets.So there is capital gains this benefit of setting off nacelle.So things have been made centre simple, and they’ve been clarified precisely in the law.That’s the first thing.
So I’m hoping in the next budget which is not but also far away, they would have started preparations.So it would be a good idea to, you know, look at all of these areas.I wish I had a ask you what can be picked from these countries.Of course you mentioned one thing which is capital gains.You know how how these countries are also counting it under capital gains.If there’s any other point you thing that we can pick from other countries and which can suit our needs here as well, you’re absolutely Saudi bureau.
All the loss that we’ve drafted so far more out of suspicion and fear rather than any kind of prudence.So the first guest to sort of, you know, consider whether these can be reported as capital gains.
We spoke for that and pack about lost set up because, you know, essentially with TDs regulations with no less set off very small battery which is available, you’re literally you’re Oh, you’re forcing people developed as exchanges.So I think all of these need to be looked at and essentially on GST.So you know, people are concerned that gonna come through.There have been talks about what rate to apply to be 18%.It could be 28%.And then, as you know, this much confusion around, when is it coming and how is it going to impact us? So I think all of the that clarity needs to emerge in now that this said that you know, you can can create exchanges, have to do these complicated compliance they need to convert into primary VDs but may not have enough data around all of this.
And I mean in the sense that there now, so tech savvy, we have seen her digital payments evolved because there was so much better regulation.So instead of fear, you know, if they decide to look at prudence if they so they picked up a lot of tax laws from the UK Lords and which is actually harm a clearer the decorations are spend up in the much better fashion.
I think it sort of needs a real Oh, can’t hoping in the next six months something comes Ajit.I mean, we’ve listed different countries here which contributed you Think is, is the most crypto friendly.So it has changed.It was Estonia.
It was Malta for very short period.
It became Singapore today amongst the major nations.So I am not looking at the financial heaven’s like British Virgin Island State mental state are driving amongst the major nations today.It is probably the United Arab Emirates and that’s why we see the brain drain also happening and lot of exchange Indian exchanges, especially leaving the country and then going to the That is not entirely correct.What it happened in these countries are these exchanges are never incorporated in India.The brain drain you are referring to is happening by just a residence relocation of the founders of these exchanges exchanges were never rate registered in India to begin with or like that.
Yeah, sure, But these are Indian exchanges zero and they are making Dubai as a base.And if we had a regulation here, of course they would have been settled here.Would you agree? Yes, I agree.In fact, I think that other than your clean, which is which countries can India learn from? India should also learn from India, namely classified.This had anything less than an asset and then learn how you are regulating other assets in India and apply the same rules year.I think that is a great easy point to stash.
And you know, when you look at Singapore, you think they’ve learned the lesson tough.A big it’s of course, they were also very crypto friendly.But then all of these protocols failing and that now they are thinking to redo it a bit.Do think have launched the lesson tough and probably week.
We have some lesson to learn from from that storey.Interestingly, I have spent a time and Cilla for a couple of years as CEO of a grip to exchange and Singapore and I must say that Singapore’s priorities are a little different, so they are not valid about Dollarisation, which are B is worried about.They are also not worried about tax evasion.Their primary concern turned out to be consumer protection.
There was a point of time when things went out, the hand and every taxi, every bus stop, every bus in Singapore would have an ad of some crypto provider, and this created all of U N cry because it was felt that you will be preying on the innocence of the gullible investors and that is there a crackdown and said, You just can’t do any of these things.
So sure, consumer protection remains of very magician, even for India.But India’s other big issues, such as a tax evasion, our capital flight it’s set.Also, we can learn from Singapore because they had to take an extreme action for consumer protection.
Okay, last question from free T here I I asked this from a lot of gas and every time we discuss regulation and sorry to ask it from you hear, when do we expect a regulation? When is it coming? And if yes and what is the procedure, which is left to be done yet I think again I would stay.Government is moving with a lot of fear and suspicion, so candid talk about global cooperation.I think that’s a long time coming.It’s B cooperation.At some point, there will be mutual understanding.There will be ability to, you know, sort of look at tax policies across all of these countries where there is high trading activities, all of that will emerge.
But it’s very, very important right now.I feel for the RBI to come out with.You know what exactly thinks about currencies and in Bihar again for the tax authorities to actually clarify, You know, all of these great sections understanding of, you know, various aspects of PDS looking at also for acquisition, what all cost one can set up.And, of course, on the loss set of which I think these two or three things once there is more clarity once you know, these are sort of undisc you former taxpayer perspective, then things could really improve and and generosity fully should, you know, take longer because the other important burning issues with respect to GST.But in terms of income taxes, I am hoping in the next six months something should come.And as you mentioned, there be stance.
You know, Finance Minister Nirmala Seetharaman also mentioned it in the parliament where she said that they want a complete ban.So that’s the kind of strong criticism that we hear when it comes to RBI.But of course, government stance is yet to be revealed.We are yet to see where it is headed by.Thank you so very much for discussing all of this, announcing all our questions..
