India will neither legalize nor ban cryptocurrencies at this time

India’s Finance Minister Nirmala Sitharaman clarified on Friday (February 11) that the government has not yet made a decision on whether to legalize or ban cryptocurrencies.

Nirmala Sitharaman 

During his budget speech last week, Sitharaman announced that crypto earnings would be taxed at 30%. The tax plan has led many to believe that the Indian government has legalized cryptocurrencies.

Answering questions from MP Chhaya Verma during the ongoing budget discussion in Rajya Sabha on the legitimacy of cryptocurrencies through taxation, Sitharaman replied:

“I will not legalize or ban it at this time. The ban or non-ban will come later when I get input from the consultations.”

Sitharaman further emphasized that whether cryptocurrencies are “legal or illegal” is a different matter, but I will tax them because it is a sovereign tax.

The Indian government has been working on the cryptocurrency law for years. A cryptocurrency bill was listed for consideration during Parliament’s winter session, but it was not passed. It has since been reported that the government is currently revising the bill.

India’s Economy Minister Ajay Seth said last week that “regulation or ban, whatever it may be, an appropriate policy response to crypto assets is being worked on.” He added that the government is consulting extensively with stakeholders on cryptocurrency legislation.

In addition, Sitharaman said this week that the Indian government is constantly monitoring the burgeoning sector.

Meanwhile, nearly 75,000 Indians have signed a petition on Change.org for the government to introduce sound crypto tax policies.

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