The truth is that having crypto assets is no longer unlawful; nevertheless, taxing them does not necessarily make them legal.
                     CryptoShrypto
India’s Quest For The Best Crypto Currency 
Policy Continues
Crypto currency has taken the country by storm. Everyone has 
something to say about it. The crypto bill and its taxation policy is 
the talk of the town. Crypto enthusiasts, young investors, crypto 
miners, and everyone else are thinking about how to capitalise on 
it. As it turns out, the Central Government of India is in favour of 
technology behind crypto currency, Blockchain but not the crypto 
currency.
In the last couple of months, they have taken an active role in 
regulating crypto currency in India and have even decided to put 
up unique policies.
They continued their quest to crackdown cryptocurrencies 
with the latest on being the RBI's directive of barring 
banks from providing service to cryptocurrency 
exchanges. In the midst of this, the prices of 
cryptocurrencies have taken a hit and are expected to fall 
further. There is a lot of cryptocurrency news about 
market fluctuations every day. But, is this really the death 
knell of cryptocurrencies in India?
We at Cryptoshrypto have written earlier about the 
different aspects of cryptocurrency regulations and how 
difficult it is for cryptocurrencies to get their act together. 
In this article, we will take a look at the recent 
developments and see why the RBI directive is an over-
reaction. Stay tuned with us to find the latest 
cryptocurrency news from India.
Concerns About Cryptocurrency
The rapid pace of technology and digital 
innovation, if not accompanied by proper safety 
measures, may constitute a supervisory burden for 
global financial authorities in a large country like 
India. Regulators will need to weigh the good and 
negative effects of developing technologies, 
especially if these technologies have an impact on 
markets and potentially influence how fiscal and 
monetary markets work. 
Dr. T. Rabi Sankar, (Deputy Governor, RBI), stated 
in a recent address that we have also seen that 
cryptocurrencies are not susceptible to definition 
as a money, asset, or commodity; they have no 
underlying cash flows, no intrinsic value; that they 
are equivalent to, and may be worse than, Ponzi 
schemes. 
One of the primary regulatory concerns is anything 
that may become a national security issue. 
Regulators are concerned about the abuse of 
crypto currencies, which leverage their anonymity 
to undermine anti-money laundering measures.
POLICY 
INDECISIVENESS
In reality, there is no ban on the use of 
cryptocurrencies (or crypto assets), nor is there 
any rule that governs their actual use in India as 
per the latest crypto currency news. The crypto 
bill, which has been spoken about for a long time 
but is still languishing in successive sessions of 
Parliament, is supposed to "provide a facilitative 
framework for the formation of the official digital 
currency to be issued by the Reserve Bank of 
India." 
India recently decided to tax digital assets such as 
crypto currencies and non-fungible tokens (NFT), 
imposing a 30% tax on their transfer as well as a 
1% tax deduction at source (TDS) on each 
transaction. This TDS, while minimal in cost and 
will not give the impression of a significant 
transaction, will provide a list of people who deal 
in cryptos. This action itself has sparked a 
discussion about the legality of such assets, as 
well as whether taxes on them have legitimised 
them. 
The truth is that having crypto assets is no 
longer unlawful; nevertheless, taxing them does 
not necessarily make them legal.
In India, crypto currencies are still not 
approved. However, this does not mean that 
you can not use it. You can always use 
crypto-currency for personal transactions like 
buying and selling, but not for commercial 
transactions. If you want to do any kind of 
crypto-currency transaction, you need to get 
a special licence. The Reserve Bank of India 
has not yet issued a licence to any entity. The 
only way to do this is to register with the RBI, 
but a PAN card will not be issued. A crypto 
currency is a digital asset designed to work 
as a medium of exchange. Cryptocurrencies 
use decentralised control as opposed to 
centralised electronic money and central 
banking systems. 
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