India Legitimizes Cryptocurrencies By Introducing Tax Regime

During a presentation of India’s federal budget for the next fiscal year, the country’s finance minister Nirmala Sitharaman announced that the government plans to impose a 30% tax on income gained from cryptocurrencies.

Sitharaman also said that this levy includes crypto exchanges, as well as non-fungible token (NFT) transactions and that crypto investors in the country will not be able to offset their cryptocurrency losses against any other asset classes.

The announcement, which lays the foundation for legitimizing the crypto asset ecosystem in India, marks an end to years of uncertainty around the regulatory treatment of the crypto asset class.

The government said it expects to present a new draft of the crypto bill soon.

Legalizing cryptocurrency trading in India is great news for the country’s 15-20 million investors, whose holdings are valued at more than $5 billion.

Sitharaman separately said India’s central bank is planning to introduce a blockchain-based digital currency in the fiscal year 2022-2023, adding that this would pave the way for cheaper and more efficient management of money.

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