The cryptocurrency’s future looks doubtful in India. Still, a lot of people made Crypto investment around the world. But, India’s central bank has already been alerted citizens of its nation about the risk of crypto investments. Still, people continued investments in crypto.
Reserve Bank of India has already raised a notice against the cryptocurrency in 2013. During the Christmas season, the RBI has explained the risk of cryptocurrency in terms of legal, security, and financial risks. As per the records data, the Bitcoin network came into the market in 2009. In the span of four years, RBI detected the risk factors of the world’s first cryptocurrency, bitcoin.
We also knew that earlier this month, RBI petitioned its board regarding the complete ban on Crypto, because the partial restrictions does not work on crypto. A source said that the RBI announced a complete ban on the crypto trade in India in 2018. It also ordered other banks not to encourage it. However, the Supreme Court set aside the RBI petition in 2020.
Legal experts say it is too late to ban crypto even if recognizing it as legal tender isn’t an option. Moreover, the government plans to balance the investor’s sentiment and try to not let it grow in the future.
Further, a group of government people said that the crypto may trade as an asset class through SEBI. But, there is no confirmation announcement on that statement. Further, Cryptocurrencies are considered investment instruments by the government and will be regulated. But, as assets, cryptocurrencies are likely to attract capital gains tax under income tax rules. However, It is uncertain how GST and TDS will tax.
Nirmala Sitharaman said the government will not allow crypto to make payments in India.