The government may allow certain cryptocurrencies to be traded as an asset or a commodity. But that cryptocurrency will not be legal for any transaction and the government will also charge tax on crypto. The government is finalizing the bill related to cryptocurrency and the final seal on it will be from the Prime Minister’s Office (PMO).
After that it will be presented in the cabinet and then in the parliament. However, the bill, proposed to be introduced in Parliament, calls for a ban on all private cryptocurrencies. But some crypto may also be approved as an exception under the technology used in cryptocurrencies.
The Reserve Bank of India (RBI) wants a complete ban on crypto, but the finance ministry is in favor of allowing crypto as an asset so that it can be taxed. There is talk of bringing tax rules on crypto in the upcoming budget. According to sources, one or two cryptos may be allowed to be traded as assets.
Former Reserve Bank of India (RBI) governor Raghuram Rajan has warned people about cryptocurrencies. Comparing cryptocurrencies to chit-funds, he said that out of around 6000 operating in the world, only a few cryptocurrencies will survive.