The Budget has not come up with anything concrete concerning the cryptocurrency as was speculated that crypto might be banned. However, the budget while imposing a 30% tax on virtual assets has not talked about the legality of the cryptocurrency in the country.
Concerning the fate of the cryptocurrency, there does not appear to be any clarity whether the Government is planning to ban it or is going to implicitly allow the same. The Government in its budget has stated that any income generated from the transfer of virtual assets will be taxed at 30%. The Government has also made it clear that 1% TDS will be imposed on all such transactions—which indicates the intention to tax more or widen the tax base.
Whatever may be the case, as of now, it does not appear that the Government is in the mood of banning cryptocurrency, even the points made above are suggestive that the Government might end up deciding otherwise.
Also, what is interesting to note is that the Government has decided to include Virtual Digital Assets in the word “property” which in a way also is suggestive that in future, there are all the chances of cryptocurrency currency being legal.
All said, while the Government has not come up with clarity on this, its inclination is clearly visible even as the Government has left ample room for itself to notify and de-notify virtual entities as per its ease which will then decide on the further line of action.
No matter what the Government will end up deciding regarding the cryptocurrency, there is a need to understand and acknowledge transition in the technology, while the unregulated sector might cause severe imbalances in the system, there is a need for taking steps to get hold of the world of cryptocurrency and take measures aiming at its regulation.
