Amongst all the conjectures and speculations of cryptocurrency getting banned. The Government of India has finally released a big statement on cryptocurrencies. According to this latest news, the Indian government will ban cryptocurrencies in the country. But it will regulate them as ‘assets.’
There might be an amendment in Section 26A of the Income Tax Act and the Annual Information Regulation (AIR). After this, the Indians who trade or invest in cryptocurrencies. Those who hold such coins outside the country on Indian platforms might come under the taxman’s surveillance.
One of the people related to this field told The Economic Times that “There is a recommendation to add the words cryptocurrency. Crypto assets or digital currency in some parts of the Income Tax Act. This would mean that those filing tax returns will have to disclose their income from cryptocurrency investment or trading specifically.”
Under SEBI’s Compass Now
According to another report, the government is also looking to amend foreign asset disclosure norms. As a result, Indians will have to declare whether they hold cryptocurrencies overseas or not. SEBI. The compass of the Securities and Exchange Board of India (SEBI). SEBI is the regulatory body for India’s securities and commodity market.
According to the government, once all these bills become law. People will be given some time to transfer their holdings to meet these requirements. But the flip side of this might be very costly. The people failing to do so in the given time might have to pay penalties within the range of ₹ five crores to ₹20 crores.
Prioritizing Financial Stability and Security
The Government of India very well knows the volatile nature of Cryptocurrencies. The buzz around them in the country right now. Therefore, these bills seem to perceive as a way to tackle all the problems that might happen in this field shortly.
They also have plans to amend its Prevention of Money Laundering Act (PMLA) to make provisions for cryptocurrency activity.
The imperativeness of this matter was quite visible leading to this day because of the statements of Finance Minister, Nirmala Sitharaman.
Who said that the government is closely monitoring the risks that cryptocurrencies present. She added that the government has no proposal to recognize Bitcoin as a currency in the country. The government does not collect data on Bitcoin transactions.
Since there was no such stringent law dealing with crypto assets currently in the country. This is a good step towards the nation’s financial security and stability. The bills presenting in the winter season of the parliament, refuses to accept crypto as the legal currency in India. It proposes to ban all private cryptocurrencies in India and facilitate regulation.
“Ashish Singhal, the founder and CEO of CoinSwitch Kuber and the co-chair of the Blockchain and Crypto Assets Council (BACC), in an interview with Business Insider India, said, “The industry has been actively communicating with all stakeholders keeping investor protection at the forefront.”
Conclusion About Cryptocurrency
Overall this bill very clearly condemns the rumors of crypto getting ban. At the same time shows the intentions of the government to monitor what all is going on in the Crypto Market. It takes notice of whether the citizens of this country are engaging in any unethical activities.
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