This could include measures for cryptocurrency exchanges, regular audits, and consumer deposit insurance. The gullibility of venture capitalists can be remedied by SEBI lowering investor risks through enhanced disclosure by closed-ended alternative investment funds. At the moment, crypto-asset advertising follows a code established by the Advertising Standards Council of India, a self-regulatory, non-governmental organization. As a result, no government agency currently imposes binding advertising standards on cryptocurrency and cryptocurrency-service providers. risks, existing regulators such as SEBI or the RBI should use their ad hoc authority to bring crypto-assets and their advertising under their jurisdiction.
Taxation According to India’s current taxation laws, any income generated from the sale of cryptocurrencies is considered capital gains and is taxed accordingly; however, given the increasing popularity of cryptocurrencies, the Indian government is in the process of developing a regulatory framework for digital assets. The government whatsapp mobile number list should implement a progressive tax structure with differentiated rates for short-term and long-term gains in accordance with international best practices. The government should take a technology-neutral approach to cryptocurrency regulation. Treating cryptocurrencies as “technology” first before attempting to classify them as “asset” or “currency” allows regulators to build a robust framework, providing much-needed stability to the sector.
International Cooperation. The International Monetary Fund has called for a coordinated regulatory framework to reduce crypto risks and the impact unregulated crypto token proliferation could have on financial stability, especially in emerging markets. Critical functions provided by crypto-asset service providers should be licensed or authorized, and investment services and products should be subject to the same requirements as securities brokers and dealers. Authorities should also impose clear requirements on regulated financial institutions in terms of their exposure to and involvement with cryptocurrency. With standardized disclosure requirements combined with local registration and audits, there is an urgent need to encourage localization or onshoring of digital businesses.