Around 7 million Indians have invested $1 billion into cryptos giving the government a tough task to settle fintech space in India ascertaining all the safety concerns. Here are some standpoints on how the government is initiating a legal status of cryptocurrencies in the country.
Government’s stance on cryptos?
The Ministry of Corporate Affairs (MCA) has made it a mandate for the companies to disclose crypto trading/investments or exchanges during every financial year. The Centre has assured crypto stakeholders regarding no intermittent blanket ban on digital currencies in India. Finance minister Nirmala Sitharaman has said, “The Centre was open to experimentation with new technologies and is not closing its minds for them.
Is crypto legal in India?
Cryptocurrencies are absolutely legal in India. On November 2, 2017, the government had established an Inter-Ministerial Committee (IMC) to study virtual currencies. The Group’s report, including a Draft Bill, indicated a good aspect of distributed-ledger technology and applications associated in financial institutions.
Is cryptocurrency taxable currently?
Yes. Cryptocurrency transactions are easily taxable in India, if a person earns such gains as an Indian tax resident then the crypto will be considered as a domicile.
Were cryptocurrencies ever banned in India?
A circular in April 2018, stated that RBI had appealed to all the authorities and entities to deal in virtual currencies as an aid to a person or an entity in dealing with them.
In 2018, the finance ministry had given an official statement that “the government does not consider cryptocurrencies as legal tender or coin and will take all measures to eliminate the use of these crypto-assets in financing illegitimate activities or a part of the payment system the government will explore the use of blockchain technology proactively for assuring in the digital economy.”
Is govt working towards developing digital currency?
The government is constantly working on the next-gen innovation of digital currencies to bring forth the revolutionary tech wave in India. It will invest in blockchain technology to deliver maximum benefits to its people. “The time has come to leverage its applications while at the same time strengthening the digital infrastructure,” Reserve Bank of India (RBI) Governor Shaktikanta Das said on a note that followed RBI’s initiative to develop digital currencies in India.