The regulation of cryptocurrencies will entail after the Government’s announcement to levy a 30% tax on the gains made from cryptocurrency, tells Amitabh Kant, the CEO of Niti Aayog in a conversation with Fortune India. Investors and observers were purportedly left stumped when the finance minister said in her budget speech that the Government will charge a 30% tax on any income from transfer of “any virtual digital asset”, which includes cryptocurrency, but not explicitly mentioning its legality.
Kant believes that the budget speech provided the clarity on cryptocurrencies that investors sought, quashing any grouses claiming otherwise. “There is absolute clarity in today’s budget. The Government has not banned cryptos; it has treated it as an asset class.” He adds that the regulations could either be done in part by the RBI, and in part by SEBI, but it would follow after the Government has recognised it as a virtual asset class.
He also emphasised on the introduction of a digital currency that was announced in the budget speech. “India will probably be one of the first countries in the world to have a digital currency, which you can transact digitally both domestically and internationally,” he adds.