The discussion over cryptocurrencies has been accepted to be quite normal in India after Nirmala Sitaraman has announced that there will be 30% taxation over the crypto assets. This can be considered as one of the very first steps which can bring crypto into the mainstream value of India. However, it is still under debate whether crypto can be considered a legal tender in India or not. The finance minister of India has informed that the discussion about the legal tender of crypto is presently under discussion and the regulatory document is being filed in this case.
At the same time, there have been some conflicting views about the crypto tokens in the market as well. Some analysts have informed that Bitcoin will never be considered legal in the market and there will be no regulatory document for this as well. There might be other similar technologies that will be restricted by RBI in the upcoming years. That’s why you should know about secret sharing and blockchain.
Statement by TV Somanathan
- Finance secretary, Somanathan has informed that the digital currency might be introduced by the RBI in the upcoming days but there is a very slim chance that the actual crypto tokens will receive enough attention in the market through legalized chambers.
- The digital currency will be monitored by the government. In other words, it will be centralized like any other currency which is presently being used inside India.
- The digital currency might be used for buying things that have a non-digital entity.
- This might be a solution to most of the problems which are faced by India at the moment.
- The finance secretary has been very vocal about the fact that cryptocurrencies like Bitcoin or Ethereum will never be considered in the market through legalized tenders.
- The value authorization which might be required in case of buying things like gold or diamonds will never be conducted by the government of India.
Risks associated with the investment
- It has been mentioned quite clearly that the people who are investing in crypto assets will not be protected by the government in case of any loss.
- It has been stated that the money which is invested in this sphere is entirely at the responsibility of the individual and there will be no interference of the government even if there is any kind of loss.
- The finance secretary has mentioned that the values which are related to the crypto world are not exactly illegal at the moment.
- But he has left the loophole in the statement by mentioning that the values are not legal as well.
- He has stated that the nation wishes to see what the effects of legalization in the other nations are and make the final decision based on it.
- Hence, the legal tender for the crypto world will not be available at the moment.
- The phenomenal increase which has been observed in the case of crypto assets throughout the world has forced the government to look into the matter with avid interest.
- It has been identified that people will continue to flow with the trend and invest in a greater number of cryptocurrencies in the upcoming times.
- The virtual digital asset will receive very strong attention in the upcoming times and the addition of the 30% taxation will change the scenario to a certain extent.
- It has also been mentioned that the government will keep a very strong eye on the effects which are created with the phenomenal increase of popularity.
Taxes of the system
- The people who are considered to be the recipients of the digital gifts might not be required to pay taxes but it is quite apparent that the sellers will have to pay the required values.
- Capital gain and speculative details will be included within this saga of crypto investment as well.
- This will be true for all kinds of speculative investments from now!
The market which is dealing with cryptocurrencies has increased over 641% in India only over the last few years. You have to keep in mind that the investments that you are making for now will be related directly with your accounts and there is a very strong possibility that the government will keep an eye on your crypto activities from now on. Ensure that your works are entirely under the legal sector of the country’s rulebook in case you want to be safe!