According to sources, the central government cannot impose a complete ban on cryptocurrencies in India. The central government is preparing to introduce a new bill in the Parliament during the upcoming winter session to regulate cryptocurrency trading in the country. The central government had earlier constituted the panel to study the issues related to digital currencies and propose specific actions with respect to crypto coins. Earlier in May, the finance minister said that a very calibrated position would be taken on crypto and digital currency as the world continues to move faster with technology.
According to the bulletin mentioned in the Lok Sabha’s website, the much-awaited cryptocurrency bill is likely to ban all private cryptocurrencies in India, with few exceptions. According to reports, the inter-ministerial panel has recommended that all private cryptocurrencies, except any virtual currencies issued by the state, be banned in India.
However, industry experts believe that there will be no ‘blanket ban’ on cryptocurrencies in India. “Bitcoin has a market cap of over $1 trillion. Over the years it has turned from a speculative tool to a store of value. All other cryptocurrencies are compared to bitcoin for reference. We’re looking to classify crypto by cases. By that analogy, it is most likely that bitcoin would be considered an asset class,” said Edul Patel, CEO and co-founder of Mudrex, a global crypto investment platform .
tax on cryptocurrency
Cryptocurrency is not taxed India Currently, however, taxpayers are required to declare their profits from investments in crypto. Taxation rules and regulations on cryptocurrency are still at an early stage and it will take some more time before it takes a firm shape. On the taxation of cryptocurrencies in India, Blockchain and Crypto Assets Council (BACC) member Kristin Bogiano said, “We believe that gains from cryptocurrencies held for more than 36 months will be classified as long-term capital gains. The profit you earn in a short period of time will be classified as short-term gains. The tax rate on these gains will vary depending on various factors such as how popular crypto investments are in India, government’s Its effect on net worth, impact on exchange rates of INR vs. other international such among many others.”
Prime Minister earlier this month Narendra Modi Had a meeting with officials on the cryptocurrency landscape in India and the way forward. Central government sources had earlier mentioned that it was looking at the regulation as “forward-looking and progressive”. After the meeting, Parliament’s Standing Committee on Finance met to take views from various stakeholders in the industry. At an event last week, PM Modi said, “Take cryptocurrency or bitcoin for example. It is important that all democratic countries work together on this and ensure that it does not fall into the wrong hands, which spoil our youth.” could.”
The details of the draft Bill were as mentioned in the Lok Sabha Secretariat bulletin in January ahead of this year’s budget session. “While the details of the draft bill appear to be the same as in January 2021, there have been several notable developments since January. First, the Parliamentary Standing Committee invited a public consultation, and then our Prime Minister himself came forward to call for crypto regulations in India. That being said, let’s respectfully wait to know more about the draft to be presented in Parliament,” said Nischal Shetty, founder, WazirX.
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