India’s finance minister (FM) Nirmala Sitharaman while announcing the Union Budget 2022 proposed to levy 30 per cent tax on income from crypto and digital assets.

The proposal came months after several reports claimed that India is intending to ban cryptocurrencies in the country

In her Budget speech on February 1, Sitharaman said, “There has been a phenomenal increase in transactions in virtual digital assets. The magnitude and frequency of these transactions have made it imperative to provide for a specific tax regime. Accordingly, for the taxation of virtual digital assets, I propose to provide that any income from transfer of any virtual digital asset (VDA) shall be taxed at the rate of 30 per cent.”

After presenting the budget, Sitharaman, at a press conference, said consultation is underway with stakeholders on digital assets, adding that there is no clarity yet on how the Government of India will regulate cryptocurrencies.

Ashish Singhal, Co-chair Blockchain and Crypto Assets Council (BACC), Founder and CEO, CoinSwitch&nbsp;in an exclusive interview with&nbsp;Reema Sharma of Zee Media&nbsp;shared his views on tax on VDA and the future of cryptos in the country.

FM Nirmala Sitharaman has categorically said that the term is 'Crypto' and not 'Crypto-currency' as being discussed in the common parlance. What is your view on it?

The industry also wants crypto to be classified as an asset class. The world is moving towards a decentralized future. Tech revolution and&nbsp;crypto-assets&nbsp;play a functional role in building the disruptive decentralized world, aka Web3.0. Regulation of crypto assets is of paramount importance as Indian citizens need to have access to crypto-assets in a safe and secure manner. Crypto is better used as an asset instead of currency, considering India already has faster payment systems like UPI.

In her Budget speech, the FM has said that income from virtual digital assets (VDA) will be taxed at 30%. How does the crypto biz interpret it?

We see this as a positive development overall. What it does is that it removes all ambiguity. And signals that the government recognizes this industry. Now there are more nuances to this. Which is: could we look at taxing this at par with other assets like securities. These nuances need to be worked out. The industry is hopeful that the government will work with the industry on some of these finer aspects.

The tax on VDA will be levied from 2023. How does it affect crypto investors this year?

We are still studying the fine print and would advise crypto investors to consult their CA’s.

FM has said the Reserve Bank of India is soon going to introduce a Digital Rupee. How can we understand Digital Rupee in light of Crypto and vice-versa?

We definitely see this as a positive step. Leads to a clear demarcation between the currency (legal tender) and other crypto assets. It addresses concerns about the stability of the monetary system while allowing cryptos and other digital assets to innovate.

India’s finance minister (FM) Nirmala Sitharaman while announcing the Union Budget 2022 proposed to levy 30 per cent tax on income from crypto and digital assets.

India’s finance minister (FM) Nirmala Sitharaman while announcing the Union Budget 2022 proposed to levy 30 per cent tax on income from crypto and digital assets. The proposal came months after several reports claimed that India is intending to ban cryptocurrencies in the country In her Budget speech on February 1, Sitharaman said, “There has been a phenomenal increase in transactions in virtual digital assets. The magnitude and frequency of these transactions have made it imperative to provide for a specific tax regime. Accordingly, for the taxation of virtual digital assets, I propose to provide that any income from transfer of any virtual digital asset (VDA) shall be taxed at the rate of 30 per cent.” After presenting the budget, Sitharaman, at a press conference, said consultation is underway with stakeholders on digital assets, adding that there is no clarity yet on how the Government of India will regulate cryptocurrencies. Ashish Singhal, Co-chair Blockchain and Crypto Assets Council (BACC), Founder and CEO, CoinSwitch in an exclusive interview with Reema Sharma of Zee Media shared his views on tax on VDA and the future of cryptos in the country. FM Nirmala Sitharaman has categorically said that the term is 'Crypto' and not 'Crypto-currency' as being discussed in the common parlance. What is your view on it? The industry also wants crypto to be classified as an asset class. The world is moving towards a decentralized future. Tech revolution and crypto-assets play a functional role in building the disruptive decentralized world, aka Web3.0. Regulation of crypto assets is of paramount importance as Indian citizens need to have access to crypto-assets in a safe and secure manner. Crypto is better used as an asset instead of currency, considering India already has faster payment systems like UPI. In her Budget speech, the FM has said that income from virtual digital assets (VDA) will be taxed at 30%. How does the crypto biz interpret it? We see this as a positive development overall. What it does is that it removes all ambiguity. And signals that the government recognizes this industry. Now there are more nuances to this. Which is: could we look at taxing this at par with other assets like securities. These nuances need to be worked out. The industry is hopeful that the government will work with the industry on some of these finer aspects. The tax on VDA will be levied from 2023. How does it affect crypto investors this year? We are still studying the fine print and would advise crypto investors to consult their CA’s. FM has said the Reserve Bank of India is soon going to introduce a Digital Rupee. How can we understand Digital Rupee in light of Crypto and vice-versa? We definitely see this as a positive step. Leads to a clear demarcation between the currency (legal tender) and other crypto assets. It addresses concerns about the stability of the monetary system while allowing cryptos and other digital assets to innovate.

How will tax on virtual digital assets impact Crypto investors in India? CoinSwitch CEO answers

The Narendra Modi-led government has listed a bill for the upcoming&nbsp;Parliament session that reportedly seeks to prohibit all private cryptocurrencies in India, but with certain exceptions.

The winter session of parliament is scheduled to take place from November 29.

The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, is among the 26 new bills that have been listed for the government's legislative agenda.

Also read |&nbsp;<a href="https://www.wionews.com/india-news/after-rbis-warning-against-cryptocurrency-pm-modi-chairs-crucial-meeting-429192">After RBI's warning against cryptocurrency, PM Modi chairs crucial meeting</a>

The government said its objective is “to create a facilitative framework for the creation of the official digital currency to be issued by the Reserve Bank of India."

The development comes days after Prime Minister Narendra Modi raised concerns about cryptocurrencies and called for regulating them. India has been one of the&nbsp;countries where investments in cryptocurrencies have been growing&nbsp;exponentially with expectations of higher returns.

The Indian government has repeatedly stressed that a regulatory mechanism was needed to regulate cryptocurrency investments.

While addressing the Sydney Dialogue—a forum on emerging, critical and cyber technologies—Modi called upon all the countries to&nbsp;join hands to ensure that the cryptocurrency is not misused.

Watch |&nbsp;Gravitas: India could ban all private cryptocurrencies soon; Cryptocurrency Bill to be tabled soon?

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“Take crypto-currency or bitcoin for example. It is important that all democratic nations work together on this and ensure it does not end up in the wrong hands, which can spoil our youth," said PM Modi on November 18.

Earlier this week, a parliamentary panel was convened to discuss the board contours of crypto finance.&nbsp;

The Standing Committee on Finance, chaired by Lok Sabha member Jayant Sinha, met with officials from crypto exchanges, the Blockchain and Crypto Assets Council (BACC), industry organisations, and other stakeholders to explore concerns about cryptocurrency regulation and promotion in India.

Moreover, India's central bank chief&nbsp;Shaktikanta Das has repeatedly expressed reservations over&nbsp;cryptocurrency investment in India.

(With inputs from agencies)

The Narendra Modi-led government has listed a bill for the upcoming Parliament session that reportedly seeks to prohibit all private cryptocurrencies in India, but with certain exceptions.

The Narendra Modi-led government has listed a bill for the upcoming Parliament session that reportedly seeks to prohibit all private cryptocurrencies in India, but with certain exceptions. The winter session of parliament is scheduled to take place from November 29. The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, is among the 26 new bills that have been listed for the government's legislative agenda. Also read | After RBI's warning against cryptocurrency, PM Modi chairs crucial meeting The government said its objective is “to create a facilitative framework for the creation of the official digital currency to be issued by the Reserve Bank of India." The development comes days after Prime Minister Narendra Modi raised concerns about cryptocurrencies and called for regulating them. India has been one of the countries where investments in cryptocurrencies have been growing exponentially with expectations of higher returns. The Indian government has repeatedly stressed that a regulatory mechanism was needed to regulate cryptocurrency investments. While addressing the Sydney Dialogue—a forum on emerging, critical and cyber technologies—Modi called upon all the countries to join hands to ensure that the cryptocurrency is not misused. Watch | Gravitas: India could ban all private cryptocurrencies soon; Cryptocurrency Bill to be tabled soon? “Take crypto-currency or bitcoin for example. It is important that all democratic nations work together on this and ensure it does not end up in the wrong hands, which can spoil our youth," said PM Modi on November 18. Earlier this week, a parliamentary panel was convened to discuss the board contours of crypto finance. The Standing Committee on Finance, chaired by Lok Sabha member Jayant Sinha, met with officials from crypto exchanges, the Blockchain and Crypto Assets Council (BACC), industry organisations, and other stakeholders to explore concerns about cryptocurrency regulation and promotion in India. Moreover, India's central bank chief Shaktikanta Das has repeatedly expressed reservations over cryptocurrency investment in India. (With inputs from agencies)

India to ban private cryptocurrencies, bill to be tabled in parliament

India is planning steps to ensure cryptocurrencies are illegal within its payments system, while at the same time appointing a regulator to oversee unregulated exchanges that trade in &ldquo;crypto assets,&rdquo; a finance ministry official said on Monday.

A panel set by the government to look into issues relating to cryptocurrencies is expected to submit its report in the current fiscal year, ending on March 31, SC Garg, Economic Affairs Secretary, told CNBC TV18 news channel.

&ldquo;The government will take steps to make it illegal as a payment system,&rdquo; he said at a post-budget event telecast by the news channel, adding the trading of &ldquo;crypto assets&rdquo; at the unregulated exchanges would be regulated.

&ldquo;We hope now within this financial year the committee will finalise its recommendations ... certainly there will be a regulator,&rdquo; Garg, who is heading the panel, said.

The government does not consider cryptocurrencies legal tender and will take all measures to eliminate use of crypto assets in financing illegitimate activities or as part of payment system, Finance Minister Arun Jaitley told parliament while presenting his annual budget last week.

The Indian government has issued repeated warnings against digital currency investments, saying these were like &ldquo;Ponzi schemes&rdquo; that offer unusually high returns to early investors.

But it has not so far imposed curbs on an industry estimated to be adding 200,000 users in India every month.

Ajeet Khurana, president of Block Chain and Cryptocurrency Committee, an industry body, said the decision to regulate crypto exchanges was good news.

Nishith Desai, head at Zebpay, India&rsquo;s largest bitcoin exchange, said the exchanges would cooperate with the government in framing the regulations. 
&nbsp;

India is planning steps to ensure cryptocurrencies are illegal within its payments system, while at the same time appointing a regulator to oversee unregulated exchanges that trade in 'crypto assets,' the official said

India is planning steps to ensure cryptocurrencies are illegal within its payments system, while at the same time appointing a regulator to oversee unregulated exchanges that trade in “crypto assets,” a finance ministry official said on Monday. A panel set by the government to look into issues relating to cryptocurrencies is expected to submit its report in the current fiscal year, ending on March 31, SC Garg, Economic Affairs Secretary, told CNBC TV18 news channel. “The government will take steps to make it illegal as a payment system,” he said at a post-budget event telecast by the news channel, adding the trading of “crypto assets” at the unregulated exchanges would be regulated. “We hope now within this financial year the committee will finalise its recommendations ... certainly there will be a regulator,” Garg, who is heading the panel, said. The government does not consider cryptocurrencies legal tender and will take all measures to eliminate use of crypto assets in financing illegitimate activities or as part of payment system, Finance Minister Arun Jaitley told parliament while presenting his annual budget last week. The Indian government has issued repeated warnings against digital currency investments, saying these were like “Ponzi schemes” that offer unusually high returns to early investors. But it has not so far imposed curbs on an industry estimated to be adding 200,000 users in India every month. Ajeet Khurana, president of Block Chain and Cryptocurrency Committee, an industry body, said the decision to regulate crypto exchanges was good news. Nishith Desai, head at Zebpay, India’s largest bitcoin exchange, said the exchanges would cooperate with the government in framing the regulations.

India to bar cryptocurrencies from its payments system: Finance ministry official