Will there be a ban on crypto?
The transactions on cryptocurrencies in India are going to be taxed in at 30%. Although the possibility of ban is not ruled out yet.
Despite 30% tax on crypto currencies, the question remains whether there will be a ban on bitcoins or crypto currencies.
What is crypto currency?
Crypto currency is a digital currency or asset. It is based on blockchain technology. Blockchain technology is a type of electronic ledger. There are different types of crypto currencies around the world, Bitcoins, Ethereum, Dogecoins etc.
Digital assets may be NFTs, crypto currencies etc.
All cryptocurrencies are digital assets but not necessarily currency for transaction.
Crypto in India
With the budget 2022, crypto currencies in India will be treated as digital assets. Moreover, the tax on crypto currencies is 30% of any transaction including gifts.
However, RBI will launch its crypto currency in FY23. Digital rupee is the name of the legitimate crypto currency of India. It will use CBDC (central bank digital currency form) form that will help make faster and better transactions. It will be have an edge above other modes like RTGS, IMPS, and UPI.
Will there be a ban on crypto?
As per the government, crypto currencies are subject to taxation now onwards. Although taxation does not imply legitimisation. The government is not ruling out the possibility of ban on it. The government is not allowing the usage of crypto currencies as a currency in India. Although their status of digital assets remains.
The status of currency and every individual mining the currency cannot go hand in hand. For a central bank must monitor currencies.
