Government to ban all private cryptocurrencies, create framework for official digital currency

New Delhi: The Cryptocurrencies and Regulation of Official Digital Currency Bill (2021), which seeks to regulate cryptocurrencies in the country, will be introduced in the upcoming winter session of parliament, according to a legislative schedule announced on Tuesday evening. The bill aims to outlaw all private cryptocurrencies in India. To promote technology and its applications with few exceptions. The move comes amid concerns over previous reports that such currencies are being used to defraud investors with false claims and to fund terrorist activities. ( ban on cryptocurrencies)

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Bill to be introduced in winter session from November 29

The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 seeks to ban all private cryptocurrencies in India, but it provides specific exceptions to the underlying technology and encourage its use, according to the bill. According to the statement, the objective of the law is to provide a convenient environment for the creation of an official digital currency to be issued by the Reserve Bank of India. The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, was introduced during the winter session beginning November 29. It is one of 26 new bills on the government’s agenda to be passed and passed.

Payment of capital gains tax on cryptocurrency profits (ban on cryptocurrencies)

Revenue Secretary Tarun Bajaj said in an interview to PTI that the government will examine changes in income tax rules to include cryptocurrencies in the tax net. These adjustments may be included in the annual budget for the coming financial year. He further added that some people were already paying capital gains tax on their cryptocurrency profits. He replied that the GST laws are very clear. Taxation will be levied in the same way as other services. According to the revenue secretary, the government will use the existing rules to classify facilitators, brokerages and trading platforms. It will also use the tax methods used by other platforms providing similar services. He added that whatever GST rates would be applicable on them would be applicable on cryptocurrency transactions as well. ( ban on cryptocurrencies)

Shivam Bangwal

Shivam Bangwal is an India-based Entrepreneur. He is the Founder of Successful Startups like Youthistaan, People News Chronicle, Hitchhike TV & Branding Panther. Shivam has done his Master's in Computer Applications.

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