Former RBI deputy governor R Gandhi, while sharing his views on cryptocurrency in a virtual event on September 07, stated that it should be treated and regulated as an asset. He further mentioned that the government around the world should be authorized to effectively with the illegal activities associated with cryptocurrencies.
While addressing the virtual meeting organized by the Internet and Mobile Association of India (IAMAI) and Blockchain & Crypto Assets Council (BACC), Gandhi stated that people around the world have understood cryptos are not a currency because they are not legal tender.
As per the policymakers, it is not easy to identify the original issuer of cryptocurrency, therefore, despite treating it as a currency and payment instrument, people should deem it as an asset.
“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,” said the former RBI deputy governor.
Gandhi also expressed that if cryptos are not regulated then there are chances of them being used for criminal and illegal activities. There have been several reports from the past incidents, which indicate that people have used these virtual assets in illegal activities.
“So that is where the real difficulty comes in vis-à-vis a crypto assets as there is a possibility, and not really a possibility, there has been quite a bit of an anecdotal evidence that crypto assets have been utilized for increasingly, or in large scale, for illegal activities like ransom attacks etc,” he said.
When crypto was firstly introduced in the market, its main feature and base were that neither it could be traced nor taxed.
Gandhi further explained, “So the very idea of crypto was that it should be anonymous, independent, and it 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 penalizes non-compliance.”