India Has No Proposal to Regulate Sale, Purchase of Crypto, Government Reveals

Crypto-related firms in the country are awaiting a regulatory framework to grow their business in a safe and legal manner. However, the central government has no plans to regulate this segment. The European Union (EU) and UAE have made rules for the crypto segment.

In a written reply in the Lok Sabha, Minister of State for Finance Pankaj Chaudhary said that there is no proposal to make a law to regulate the purchase and sale of virtual assets in the near future. MP GM Harish Balayogi had questioned the government’s stand on this segment. He had asked whether the government has any such proposal. Crypto There is a proposal to bring rules to regulate the segment.

In response to this, Chaudhary said, “There is no proposal to bring a law to regulate the purchase and sale of virtual digital assets. However, the Financial Intelligence Unit (FIU) has been authorized for special monitoring purposes such as anti-money laundering.” During its presidency of the G20 last year, India collaborated with the International Monetary Fund (IMF) and the Financial Stability Board (FSB) to draft a crypto-related law for all members of the G20 group. Chaudhary said that all the G20 countries are analyzing the advantages and disadvantages of crypto in their context.

The government’s tough stance on the crypto segment continues. Crypto firms were shocked by the lack of any tax relief in this year’s budget. In the budget presented last month, Finance Minister Nirmala Sitharaman announced reforms for some sectors. However, there was no mention of the crypto segment or blockchain technology in it. Crypto firms had requested the central government to reduce the tax deducted at source (TDS) on crypto transactions by one percent. Bharat Web3 Association told Gadgets360, “We had given an analysis regarding the reduction in users’ trading and transactions. It also explained how the government’s revenue can increase by changing the structure of taxation. We will continue to press for balanced taxation.”