NS cryptocurrency market India has been quietly blossoming for the past several months and following the concerns raised repeatedly by the Reserve Bank of India, the Center has taken note of the issue. The government, in recent days, has indicated that it is planning to regulate cryptocurrency To prevent investors from holding them without any restrictions. However, it does not want to ban crypto coins completely, as it had previously planned. This is because the government wants to evolve as the world changes everyday, Prime Minister Narendra said categorically a day earlier during a virtual keynote address at the Sydney Dialogue.
According to a Reuters report, Narendra Modi The government can only allow cryptocurrencies that have been pre-approved by the authorities to be listed and traded on exchanges. The process is cumbersome but deliberate, sources familiar with the developments told the news agency.
A source said on condition of anonymity, “Only when the coin is approved by the government, then it can be traded, else its possession or sale could attract fines.”
On Thursday, 18 November, Prime Minister Narendra Modi said that cryptocurrencies “should not fall into the wrong hands and spoil our youth”, urging all democratic countries to come together and ensure that such things do not happen. . The government and the RBI have recently hinted about establishing a stronger regulatory control over cryptocurrencies to avoid money laundering and terror financing, rather than banning them outright.
According to a Reuters report, the government aims to introduce and pass a cryptocurrency law in a parliamentary session that begins this month. Such a pre-verification approach would create hurdles for thousands of peer-to-peer currencies that thrive when they are outside the scope of regulatory scrutiny, it said.
The Center had indicated at the beginning of the year that it would consider criminalizing the possession, issuance, mining, trading and transfer of crypto assets and bringing in a law regarding the same.
However, the stance has changed since then, with the crypto ecosystem booming. But it is only a vision change, two sources told Reuters. Major capital cans as well as other taxes are likely to be imposed on crypto assets to discourage trading of digital tokens. According to a senior government source, investors “will have to pay more than 40 percent on any crypto gains so far. Additional Goods and Services Sales Tax (GST), and securities transaction tax, will be levied on top of any capital gains tax. , said the source, who did not wish to be named.
According to reports, the upcoming legislation is set to address the share of taxation on cryptocurrencies, which is likely to be 1 percent. Platforms that do business with cryptocurrency can be classified as an e-commerce platform. The proposed bill on cryptocurrency is expected to be introduced during the winter session of Parliament.
Modi’s first remarks on cryptocurrency comes in the backdrop of a high-level meeting chaired by the Prime Minister last week on the regulation of digital tokens. Cryptocurrencies are still not taxed in India, but they are not recognized as official currency.
However, according to a report in Economic Times, cryptocurrencies may be allowed in India as an asset class instead of being banned. This means that it will not be recognized as legal tender for settlement of transactions, but can be held in the form of an asset such as gold, shares or bonds.
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