India’s finance minister has revealed the current status of crypto policy in India, including whether crypto will be legalized or banned in the country. After the announcement by the government that crypto transaction income will be subject to 30% tax, parliament raised questions about the legitimacy and legality of cryptocurrency.
India’s Finance Minister Reveals the Status of Crypto Policy
India’s finance minister, Nirmala Sitharaman, clarified on Friday that the government has not made a decision on whether to legalize or ban cryptocurrency.
The finance minister declared that the 30% rate of income from crypto currencies will be taxed during her budget speech. Many believe the tax plan is a way for India to legitimize cryptocurrency.
Replying to questions raised during an ongoing Budget discussion in Rajya Sabha, the upper house of India’s parliament, by Congress member Chhaya Verma on the legitimacy of cryptocurrency via taxation, the finance minister was quoted as saying:
At this point, I’m not planning to ban or legalize it. If I get input from you, banning it or not will be done.
She further emphasized that whether cryptocurrency is “legitimate or illegitimate, it is a different question, but I will tax because it is a sovereign right to tax,” PTI reported.
Since many years, the Indian government has been working to create a crypto bill. The winter session of parliament was supposed to consider a cryptocurrency bill, but the matter was not voted on. There are now reports that the government has begun to rework the bill.
India’s economic affairs secretary, Ajay Seth, said last week that “Regulation or ban, whatever it is, appropriate policy response to crypto assets is in the making.” He added that the government is consulting widely with stakeholders regarding crypto legislation. A finance minister also stated this week that India is continuously monitoring crypto.
A petition was started by nearly 75,000 Indians on Change.org to demand that the government implement reasonable crypto tax policies.
Do you agree with the Indian finance Minister’s clarifications? Are you concerned that India might ban cryptocurrency or allow it to be legalized? Comment below to let us know your thoughts.
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