Earlier the last year, the increasing popularity of crypto coins like bitcoin has been a significant matter of concern for the government of India. Because of all this, the government was looking forward to banning the cryptocurrency movement in the country.
However, the prime minister of India is very well-acknowledged about the spread of crypto coins and believes that these can be an incredible medium of developing the whole nation towards success. Unfortunately, there are many hurdles in implementing crypto coins in the country’s financial system.
Still, some nations have already done so. For example, El Salvador accepted bitcoin as a legal tender. But, the other nations are not following the suit. They believe bitcoin to be a threat to the whole financial system and, therefore, at the moment needs to be curbed, as in the words of different nations’ financial advisors.
There have been many complications in launching a cryptocurrency bill in India. Towards the end of 2021, there were a lot of statements in the media from the officials of the Indian government that they were going to bring about a cryptocurrency regulation Bill.
However, it is a very awaited bill of the whole parliament session due to its increasing number of cryptocurrency enthusiasts. People are very well curious about the new bill because it will specify if they want to pay the taxes or not. Also, it is confusing because of lower tax clarity. People do not know about the total tax they have to pay on making crypto coins. It is a matter of concern, and therefore, The government needs to launch the new cryptocurrency bill as soon as possible.
As per the latest reports, the crypto bill for which everyone has been waiting for a lot of time has a rare possibility to be a part of the 2022-23 budget session. It is the latest update on the cryptocurrency bill from the government of India because the bill is not ready yet.
According to the government officials’ statement given to news channels, the bill must be a 360° turn. The winter session with the recent one in which the bill was about to be launched. It was not launched because of some important reasons. The government officials said that it is because of a lack of clarity about the crypto coins. However, the cryptocurrency users expected their bill to be launched in the Parliament session this year.
However, that was also delayed because of a lack of clarity. The government says there is a requirement for deeper information about cryptocurrencies to make them regulatory. To ban or specify some rules and regulations for digital coins, the government first needs to understand all the aspects of digital assets. Also, they need to compare the investment options such as crypto, real estate, or gold so investors can get over to the right path.
A global world economic forum address was held on Monday, including India’s prime minister. At that conference, the prime minister of India also brought up the cryptocurrency and its regulation’s matter. He mentioned that he wanted to express the global deliberations on the crypto regulations first to be very well equipped with all the requirements for launching a cryptocurrency bill.
Even though there have been many complications with cryptocurrencies, the government is not looking forward to banning them altogether. However, as bitcoin is a most spreading crypto coin, it needs to be regulated, as per the words of the Prime Minister of India. Also, the PM of India wanted a synchronized global action toward the cryptocurrency regulations so that the whole world could benefit from the underlying technology of the crypto coins.
According to the reports, the sources said that the delay in bringing about the cryptocurrency bill would not provide the government with any more clarity on the country’s taxation system for crypto income. Currently, there are a lot of indications that the Centre should be leaving taxes like TDS and TCS on the cryptocurrencies and the income that people make out of them.
In December 2021, there were reports that many changes must come to the cryptocurrency Bill proposed in front of the ministry. According to the Cabinet, there will be a penalty on the people who will violate the regulations imposed by the official bodies. Anyone who is not going to comply with the rules and regulations stated by the government for the use of crypto coins will have to go through complications and will also have to pay penalties.
Also, there will be a non-bailable punishment for the offenses that will come under the law. The violator will also be punishable with a jail term of half-year. Apart from this, the government can find the violator with up to 50,00,00,000 rupees.
The cryptocurrencies were also proposed to be treated in India as an acid regulated by the market regulator SEBI. The total crypto assets in the country of India are valued at about 45,000 crores, with a total number of 15 million investors.