Attention Cryptocurrency Investors: The Finance Minister has said today – Taxing does not mean legalizing

Govt on Cryptocurrency: The clouds of crisis have once again deepened on cryptocurrency and crypto investors. After the government imposed a tax of 30% on profits from cryptocurrencies in the budget, crypto exchanges understood the message that while it is unofficial, it has become legal i.e. not illegal. But on Friday, Finance Minister Nirmala Sitharaman made a big statement in the Rajya Sabha regarding cryptocurrencies, saying that imposition of tax does not mean that cryptocurrency has become legal.

Finance Minister Nirmala Sitharaman was answering a question during the discussion on the budget in the Rajya Sabha on Friday. He has said that the government has only taxed the profits of cryptocurrencies. The government has not taken any step to legalize, ban or regulate it.

Sitharaman said, “I am not going to legalize or ban it now. The decision to ban it or not will be taken later. When we get full input about it, then it will be decided.” After this statement of the Finance Minister, the picture regarding cryptocurrency is expected to change for the time being.

It is worth noting that in the Budget 2022-23, it was said to levy 30 percent tax (Tax on crypto) on the profits made from virtual assets. Apart from this, 1 percent TDS (TDS on Crypto) was also announced on its transactions. From this it was believed that the government had taken the first step towards legalizing cryptocurrencies. But, after Nirmala Sitharaman’s statement on Friday, it has become clear that it is difficult to guess what the government’s policy on crypto will be.

RBI said – it is a threat to the security of the country

The Reserve Bank of India (RBI) has been against the recognition of cryptocurrencies. It has repeatedly said that recognizing it would threaten the security of the country. Apart from this, it is also not good for economic and financial stability. It has announced the launch of its digital currency.

The government has also decided to introduce a bill in the Parliament to make concrete rules and regulations on cryptocurrencies. This bill was to come in the winter session of Parliament. But, it was not introduced due to non-completion of discussion about it. The government is trying to know the opinion of all the parties related to it.