Govt rules on crypto trading rules, taxation etc expected soon: here’s what to expect  |  Photo Credit: iStock Images
- Govt likely to take balanced approach with respect to rules given investment by Indians and technological innovations in virtual currencies
- The government had first listed the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, for the budget session but did not introduce it for larger consultations
- A govt panel in 2019 recommended outright ban on cryptocurrency trades along with Rs 25 crore fine and 10-years of imprisonment for those found trading in same
India is unlikely to take a tough stance on cryptocurrencies despite myriad concerns around it as it moves to dictate rules around digital assets in the upcoming Winter Session of Parliament.
An outright ban on crypto-assets is not being considered given the volume of trading and investments in the country but the unregulated virtual currencies are neither being considered as legal tenders, said an Economic Times report quoting unnamed government sources.
The government is most likely to take a middle path and a final decision on the matter is likely soon.
A detailed assessment of pros and cons, regulations adopted by other countries, investments made by Indians in the industry and Reserve Bank of India’s (RBI’s) views on the matter was done by policymakers, including the finance ministry recently. Yet another presentation will be made on taxation on trading of such assets after the matter will be sent to the Cabinet after legal vetting from there.
The growing view in the policymakers among the government is that rules and regulations should be made in a way that can be executed effectively and technological developments in the digital space can be taken into cognisance.
An earlier draft bill did not appropriately address the matter.
The government had first listed the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, for the Budget Session but did not introduce it for larger consultations. A ministerial panel was then formed to analyse the draft rules around such currencies.
Finance Minister and earlier told ET, “I’ve already said that we are not saying no to cryptocurrency. We are saying we’ll have to see how this technology can help fintech to maximise the potential that it has.”
A high-level government panel in July 2019 had suggested a blanked ban on cryptos along with Rs 25 crore fine and 10 years imprisonment for anyone found dealing in them.
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