crypto segment: Ready-made consultation paper on the crypto segment
crypto segment: Before making regulations for the crypto segment, the central government will look into the rules applicable to cryptocurrencies in other countries.
The central government has taken steps to regulate the crypto segment
The central government has taken steps to regulate the crypto segment. Economic Affairs Secretary Ajay Seth gave this information on Monday. Along with this, he said that inflation is likely to decline in the coming months. The Reserve Bank of India (RBI) had last year demanded a ban on cryptocurrencies. However, the government says that it will not ban this segment completely.
In this regard, Seth told reporters during an event on Monday that there needs to be a global consensus regarding cryptocurrencies. Before regulating this segment, the government will look at the regulations related to it in other countries. He said that the government has prepared a consultation paper on cryptocurrencies. In this year’s budget, the government had announced a 30 percent tax on profits earned from trading cryptocurrencies.
Cryptocurrency trading volumes have dropped significantly since the beginning of last month following the introduction of a tax on profits from digital assets in the country. Finance Minister Nirmala Sitharaman had announced a tax of 30 percent on profits from crypto trading. Apart from this, a TDS of one percent will also have to be paid on every crypto transaction from July 1. Taxes on crypto trading were announced in the budget in February and since then this issue has become a cause of controversy among people associated with the crypto industry. Many industry experts and crypto enthusiasts have praised the government’s approach to regulating this segment rather than banning it, while some others believe that the tax rate on crypto profits should be reduced.
However, there is confusion regarding the definition of virtual digital assets. Violators of these rules can be in trouble. Violators of the new crypto law can be imprisoned for up to seven years. The central government recently said that it is not considering giving any tax exemption to crypto miners and other people associated with the industry. In many other countries, preparations are being made to make laws regarding the crypto segment. Recently, an executive order related to this segment was issued in America.