T. V. Somanathan, Indias Finance Minister, insists on cryptocurrencies being a ‘grey area’ being neither illegal nor encouraged.
“Crypto-assets are currently neither illegal nor are they encouraged. So they’re in a sort of a grey area.
T. V. Somanathan
Clarifying in an interview with Bloomberg, Somanathan states Indians can still trade digital assets – but now with a heightened tax of 30% on gains.
The recent tax increase is because crypto is seen as speculative transactions rather than financial market transactions due to the volatile nature of digital assets.
The increase came because finance minister, Nirmala Sitharaman noted a ‘phenomenal increase’ in digital asset transactions – causing the need for a tax regime.
Regulate, Rather Than Ban
After considerations imposing a total ban on Cryptocurrencies due to their threats to financial stability and macroeconomics, the country has turned to a less head-on approach.
Somanathan plans that the country will examine international cryptocurrency regulation before rolling out its own framework.
Watch the full video: Crypto Assets Not Illegal or Encouraged in India: Finance Secretary