Subhanwita Goswami
Nirmala Sitharaman, the finance minister, stated that a decision about the “banning or not banning” of cryptocurrencies will be made following consultations. She added that the government’s decision to impose a 30% tax on cryptocurrency earnings has nothing to do with the marketability of private digital currencies.
FM Sitharaman responded to the Rajya Sabha Budget debate by saying, “Banning or not banning cryptocurrencies would come thereafter after talks.”
FM Sitharaman commented on the proposal to impose a 30% tax on cryptocurrency gain as “not doing anything to legalise or restrict cryptocurrencies.”
The government suggested a 30% tax on gains gained on cryptocurrency trading by investors in the Union Budget for 2022–23, which was presented to Parliament on February 1. Participants in the cryptocurrency business praised the proposal, saying it legitimises their trades.
When Reserve Bank of India (RBI) Governor Shaktikanta Das announced monetary policy on Thursday, he addresses two challenges as private cryptocurrencies threaten macroeconomic and financial stability. He said he would lose his ability. The RBI governor warned investors that such assets had no fundamental value of “even tulips.” Das told investors to remember that it was his “duty” to warn investors and they were investing at their own risk. After the budget 2022, Treasury Secretary TV Somanathan said cryptocurrencies would never be fiat currencies. In an interview with PTI, Somanasan said that, like gold and diamonds, they are valuable but not fiat currencies, but private cryptocurrencies are unlikely to be fiat currencies.
