RBI Cryptocurrency Ban Should Be Revoked, Former Finance Secretary S C Garg Suggest Govt.

• ByStartupStory     |    May 8, 2021

Former Finance Secretary S C Garg, Addressing an event by Assocham said that the Indian government should regulate and control crypto currencies instead of prohibiting them. He was hinting that the RBI cryptocurrency ban should be lifted.

Further, he added there is an undue emphasis on crypto currencies, and these digital assets will require standard frameworks.

The Reserve Bank of India (RBI) had virtually banned crypto currency trading in 2018 and had directed all entities regulated by the central bank to cease dealing in virtual currencies. The Supreme Court had asked the Centre in 2019 to frame policies for crypto, and in 2020, struck down the curbs imposed by the RBI.

Garg said that “I don’t think we still have full clarity and understanding about how to regulate cryptocurrencies. Regulate, control cryptocurrencies, but allow the crypto assets, encourage the crypto services,” yet again emphasising that the RBI ban on crypto should be discouraged.

All Indian companies should only be keeping digital accounts in the next three to five years, Garg said, adding, “It is possible to integrate national accounts with company accounts.”

In the times to come, the entire system of accounting, auditing, and reporting can be automated, he added.

According to Garg, the current financial reporting standards are for the bygone industrial era, and there is an urgent need for complete digitalisation of accounting, financial reporting, and auditing for companies.

Speaking at the event, Chairman of Assocham Task Force on Accounting, Ashok Haldia and supporting Garg on the lift of RBI ban on crypto he highlighted that, financial reporting is the language of business, and there is a need to revisit accounting standards from time to time.

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