Finance Minister Nirmala Sitharaman said on Friday that after talks, the government will decide whether to “ban or not ban” cryptocurrencies.
She indicated during Parliament’s ongoing Budget session that the government’s decision to levy a 30% tax on gains from virtual currencies had nothing to do with the legality of private cryptocurrencies on the market.
The finance minister went on to say that the government has the authority to tax cryptocurrency profits.
“Banning or not banning cryptocurrencies will come subsequently after consultations,” FM Sitharaman said as she responded to the Rajya Sabha budget debate.
“Not doing anything to legalize or ban it at this stage,” she voiced regarding the government’s decision to impose a 30 percent tax on cryptocurrency gains.
FM Sitharaman proposed placing a 30% tax on gains made on cryptocurrency exchanges, regardless of the individual’s income tax bracket, during her Budget speech. Additionally, on transfers of such assets exceeding a specific level, a 1% tax deducted at source (TDS) will be applied.
The announcement was also greeted positively by the cryptocurrency industry, with participants claiming that it legitimizes their trading.