The Supreme Court of India on Friday sought clarity from the central government on the legal status of Bitcoin in the country. Earlier this month, the finance minister had declared a 30% tax on crypto gains in the annual financial budget. However, finance minister Nirmala Sitharaman clarified that taxing cryptocurrencies does not give them legal status in the country.
Cryptocurrencies are still unregulated in India.
Though the finance ministry of India announced a 30% tax on cryptocurrencies and NFTs, the crypto market is still unregulated in the Asian country. It’s the country’s sovereign right to tax cryptocurrency transactions. However, the finance minister noted that any official stance on regulation would only come once the ongoing consultations are completed. The newly proposed cryptocurrency tax will be applicable from Assessment Year 2023-24. Investors are taking the next tax rule on cryptocurrencies as the first positive step towards crypto regulation in the country.
The Supreme Court seeks clarity on crypto regulations in a cybercrime case.
The issue of crypto regulations cropped up in a criminal case where the accused is facing charges of defrauding people in a crypto-currency scam. A bench led by Justice D.Y. Chandrachud granted the accused interim protection from arrest till the next hearing but sought more clarity on the legal status of cryptocurrency. Justice Surya Kant told ASG Aishwarya Bhatti, who was appearing in the case said, “You must clarify the legal position (on bitcoins).” The ASG said that she would. The bench, however, directed the accused to meet the investigating officer and cooperate in the investigation.
