cryptocurrencyBitcoin, Ether and Matic, such as Bitcoin, Ether and Matic, became a hot topic in the country as they have made huge profits in recent times. However, its extremely volatile nature and gray regulatory situation has always kept the demand side, investors worried. Now, the supply side, or exchange, is facing funding issues, which are adversely affecting trading in cryptocurrencies.
Recently, crypto exchange Coinbase blocked the transfer of rupees via UPI to its trading app as the National Payments Corporation of India (NPCI) had earlier said that it would not allow any crypto exchange using its payment network. I was “no life”, according to an ET report.
“We are committed to working with the NPCI and other relevant authorities to ensure that we are in line with local expectations and industry norms,” a Coinbase spokesperson said in a statement to Bloomberg.
Besides Coinbase, four other crypto trading companies have either suspended rupee deposit Or have seen banks and payment gateways pull support for money transfers on their platforms, said ET’s report.
tax on cryptocurrencies
The Union Budget 2022 had proposed a 30 percent tax on gains from the sale of all crypto assets, with one percent tax deducted at source on all such transactions. The new rules have come into effect from April 1. A new section 115BBH has been added in the Income Tax Act, 1961 to levy tax on virtual digital assets. The rules also state that losses from digital assets cannot be carried forward to the next year.
In the absence of a law to regulate cryptocurrencies, Legal Status Such properties are not yet known. Following the Union Budget’s tax proposal on cryptocurrency, investors said the provisions effectively legalized crypto trading. However, Finance Minister Nirmala Sitharaman has said that taxing cryptocurrencies does not mean that it has been legalised. The matter is still under consideration.
Even in the Rajya Sabha, the Finance Minister has said that the Center will decide whether or not to ban cryptocurrencies at a later stage, but taxing transactions does not make it legal.
During a press conference in February, Sitharaman had said that the government and the Reserve Bank of India (RBI) are “on board” with regard to the treatment of cryptocurrencies and added that discussions are underway on regulatory treatment of such digital virtual assets. ,
He had said: “We are all discussing before the budget, the discussion is on and we will continue the discussion. Whatever decisions have been taken on this, obviously this is very serious, it is a digital currency of some description from the central bank, so obviously it has been consulted with more attention.”
Sitharaman has also said that the government will give its position on cryptocurrencies after completing the ongoing consultation process. In the past, the Reserve Bank of India has cautioned people against investing in cryptocurrencies.
In the context of the speculative bubble that gripped the Netherlands in the 17th century, RBI Governor Shaktikanta Das has said that these digital assets lack the inherent value of even a tulip.
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