Winning Bizness Desk
Mumbai. The Reserve Bank of India (RBI) has recommended to the government that it should frame rules for cryptocurrencies to ban. However, the government believes that any effective regulation or ban requires international cooperation, given the borderless nature of cryptocurrencies. Finance Minister Nirmala Sitharaman said this in Parliament on 18 July.
Cryptos are financial assets or not ?
Sitharaman's statement comes amid speculation that the government may introduce legislation to regulate the crypto sector in the monsoon session of Parliament. However, no such bill has been listed for introduction. The government has not yet made its stand on crypto public. There is even confusion over their classification as to whether they are financial assets or fall under some other category like commodities.
30% tax was announced in the budget
TDS and 30% tax on cryptocurrencies were announced during the budget in February this year. It has been implemented since July. If the transaction done for cryptocurrency exceeds Rs 10,000 in a year, then it will be charged 1%. This information was given by the Income Tax Department in the notification of TDS disclosure norms for Virtual Digital Assets (VDA).
RBI's digital currency may come this year
While the law on crypto is awaited, on the other hand RBI is working on its digital currency. The digital currency is expected to be introduced this year. According to RBI Deputy Governor T Rabi Shankar, Central Bank Digital Currency (CBDC) may eliminate the reasons for the existence of private cryptocurrencies. Digital currency will also be based on block chain technology.