Friday, February 23

India Announces Crypto Tax, Advances Digital Rupee By

© Reuters.

By Laura Sanchez – India’s Finance Minister Nirmala Sitharaman on Tuesday announced a 30% tax on any income from the transfer of virtual digital assets, a first for the country.

Furthermore, he said that the digital rupee will most likely be issued in 2022-23. It is the first time that the Indian government has given a timetable on the launch of a central bank digital currency (CBDC).

“There has been a remarkable increase in virtual digital asset transactions. The magnitude and frequency of these transactions have made it imperative to establish a specific tax regime,” Sitharaman said in a critical speech on the Indian budget, according to reports. Coindesk.

Speaking about the adoption of CBDCs, Sitharaman said that a “digital rupee” will be “issued using blockchain and other technologies, the RBI will issue them from 2022-23. This will give a huge boost to the economy.”

The words crypto or cryptocurrency were not used in the budget speech. However, the finance minister used the phrase “virtual digital asset” which is interpreted by the industry as a term for cryptocurrencies and non-fungible tokens (NFTs).

Experts describe the announcement of this tax as positive and affirm that it is the first step of India to “legitimize” the cryptocurrency sector in the country.

Other analysts, however, believe that the 30% tax could deter retail investors.

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