The much-anticipated cryptocurrency bill, which was supposed to be introduced at the parliament’s winter session last year, will likely be postponed again this year.
According to reports, the Indian government meets with stakeholders to develop laws for the country’s cryptocurrency ecosystem. The central bank keeps an eye on the technical details of the RBI’s digital currency pilot project, which is set to begin in the middle of the year.
The central bank has already highlighted its concerns about cryptocurrencies “from the standpoint of macroeconomic and financial stability.”
According to ET, a finance ministry official stated that digital money is a complicated topic that requires more time. Hence it would not be implemented during the budget session. Various laws will need to be synchronized and amended for the framework to work.
The government may propose levying TCS/TDS on cryptocurrency transactions above a specific threshold. Previously, the government discussed increasing the tax on cryptocurrency trading by putting it into a 35-42 percent income bracket and implementing a 1% GST on cryptocurrency exchanges.
Prime Minister Narendra Modi used cryptocurrency as an example of the issues countries confront, claiming that the technology connected with it will render judgments made by one country insufficient to address challenges.
Still, it will be interesting to observe how the government frames the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, originally dubbed the Cryptocurrency and Regulation of Official Digital Currency Bill.