The Crypto Bill and India’s Budget!

At the beginning of last year, the increasing popularity of crypto coins like Bitcoin was a major concern for the Indian government. Because of this, the government was looking forward to banning the cryptocurrency movement in the country.

However, the Prime Minister of India is well aware of the proliferation of crypto coins and believes that they can be an incredible medium to propel the whole nation to prosper. Unfortunately, there are many hurdles in implementing crypto coins in the country’s financial system.

However, some nations have already done so. For example, El Salvador accepted bitcoin as legal tender. But the other nations are not following suit. They believe that Bitcoin poses a threat to the entire financial system and therefore needs to be contained at the moment, as the financial advisors of various nations say.

There have been many complications with the introduction of a cryptocurrency law in India. Towards the end of 2021, there were many statements in the media by Indian government officials that they would move forward with legislation to regulate cryptocurrencies.

However, due to the increasing number of cryptocurrency enthusiasts, it is a highly anticipated bill of the entire parliamentary session. People are very curious about the new bill because it will determine whether or not they want to pay the taxes. It’s also confusing because of less tax clarity. People don’t realize how much taxes they have to pay for crypto coin production. There is cause for concern and that is why the government needs to get the new cryptocurrency law rolling as soon as possible.

According to the latest reports, the long-awaited crypto bill has a rare opportunity to be part of the 2022-23 budget session. It is the latest update of the Indian government’s cryptocurrency law as the law is not ready yet.

According to the government officials’ statement to the news channels, the bill must be a 360-degree turn. The winter session with the most recent where the bill was supposed to get under way. It was not started for important reasons. The government officials said that this is due to a lack of clarity about the crypto coins. However, cryptocurrency users expected their bill to be presented in the parliamentary session this year.

However, this was also delayed due to ambiguities. The government says deeper information about cryptocurrencies is needed to make them regulatory. In order to ban or set some rules and regulations for digital coins, the government must first understand all aspects of digital assets. Also, they need to compare the investment options like crypto, real estate or gold so that investors can choose the right path.

A speech was held at the global World Economic Forum on Monday, which was also attended by the Indian Prime Minister. At this conference, the Indian Prime Minister also addressed cryptocurrency and its regulation. He mentioned that he wanted to express the global deliberations on crypto regulation first in order to be very well-armed with all the prerequisites for the introduction of a cryptocurrency law.

While there have been many complications with cryptocurrencies, the government isn’t looking forward to banning them entirely. However, since Bitcoin is a most widely used crypto coin, it needs to be regulated, according to the Indian Prime Minister. Also, the Prime Minister of India wanted a synchronized global action towards cryptocurrency regulations so that the whole world can benefit from the underlying technology of crypto coins.

According to the reports, the sources said that the delay in bringing about the government’s cryptocurrency law would not provide further clarity on the country’s crypto revenue taxation regime. Currently, there are many indications that the center should leave taxes like TDS and TCS on cryptocurrencies and the income people make from them.

In December 2021, there were reports that many changes need to be made to the cryptocurrency law proposed before the ministry. According to the Cabinet, there will be a penalty for those who violate the regulations imposed by the official bodies. Those who do not comply with the rules and regulations for using crypto coins set by the government face complications and also face penalties.

Also, there will be a non-refundable penalty for the offenses that will fall under the law. The violator will also be punished with half a year’s imprisonment. Apart from that, the government can find the violator with up to 50,000,000,000 rupees. It has also been proposed to treat the cryptocurrencies as an acid regulated by the market regulator SEBI. The total crypto assets in the country of India is estimated at around 45,000 crores, with a total of 15 million investors.

Crypto bill article and permission to publish here provided by Jean Nichols. Originally written for Supply Chain Game Changer and published on May 27th, 2022.

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