• An Indian government official has said that there is currently nothing that outlaws crypto in India so long as the legal process is followed.
• The Indian government has not yet established a regulatory framework for cryptocurrency but crypto income is already taxed at 30%.
• India’s central bank, the Reserve Bank of India (RBI), has recommended a complete ban on cryptocurrencies such as bitcoin and ether.
The Indian government has recently been taking steps to address the cryptocurrency industry. An Indian government official has recently declared that crypto is not currently outlawed in India, so long as the legal process is followed.
Rajeev Chandrasekhar, India’s Minister of State for Electronics and Information Technology and Minister of State for Skill Development and Entrepreneurship, explained that the country has nothing against cryptocurrencies provided the laws are followed. He stated, “There is nothing today that outlaws crypto as long as you follow the legal process.”
At present, the Indian government has yet to develop a regulatory framework for cryptocurrency. Last December, the government informed parliament that crypto legislation “can be effective only with significant international collaboration”. Nirmala Sitharaman, the Indian Finance Minister, has recently revealed that the government plans to discuss crypto regulations with G20 countries.
Despite the lack of a regulatory framework, crypto income is already taxed at 30% in India, and a 1% tax deducted at source (TDS) is levied on crypto transactions. The Indian government has just announced that it will be launching a crypto awareness campaign.
However, India’s central bank, the Reserve Bank of India (RBI), has recommended a complete ban on cryptocurrencies such as bitcoin and ether. RBI Governor Shaktikanta Das has stressed that “Cryptocurrency does not have any underlying value.”
It remains to be seen how the Indian government will move forward with its regulations of the cryptocurrency industry. For now, Indian citizens can be assured that they are not breaking any laws by engaging in crypto activities so long as they follow the legal process.