Cryptocurrency news: The Reserve Bank of India (RBI) Governor Sanjay Malhotra said on Friday that the central bank is concerned about Cryptocurrency (Cryptocurrency), as it may disrupt financial stability. Malhotra was asked about the developments generated on Cryptocurrency last month’s remarks on cryptocurrency during a conversation with journalists after presenting the second bilateral monetary policy review of the current financial year 2025-26. He said that there is nothing new to tell in the case of Crypto.
Malhotra said that a committee of the government is keeping an eye on it. Of course as you know that we are concerned about crypto, as it can disrupt financial stability and monetary policy. The apex court had directed the Center last month to formulate a ‘clear’ policy to regulate cryptocurrency. The court also underlined its impact on the economy. A bench of the Supreme Court called bitcoin trade as an illegal trade just like a ‘hawala’ business.ALSO READ: Reserve Bank reduced 0.5 repo rate, know what is special in RBI’s monetary policy from 10 things?
India, currently working on a discussion letter for cryptocurrency: India is currently working on a discussion letter for cryptocurrency and an inter -ministers (IMG) are looking at the global norms. This inter -ministers group include RBI, Market Regulatory Securities and Exchange Board of India (SEBI) and Finance Ministry officials. Cryptocurrency is not yet illegal in India due to no law regarding this.
This ‘discussion letter’ will give an opportunity to the stakeholders to present their views before setting a policy stance on India’s cryptocurrency. The government announced a flat tax of 30 percent on the benefits of cryptocurrency in 2022. Taxing on income from cryptocurrency does not mean to validate it.ALSO READ: RBI’s report revealed, India will remain the fastest growing economy in the world
Crypto properties in India are not currently under the scope of rules: Currently in India, crypto properties are not under the purview of rules, but it is being noted with the perspective of Anti -Money Laundering Act. In addition, in such digital properties, income tax and TDS (tax deduction at source) are levied on income from trading. Also, the Goods and Services Tax (GST) is also applicable on the cryptocurrency business. Significantly, on 4 March 2021, the Supreme Court canceled a circular of RBI on 6 April 2018. Through this circular, banks and RBI were banned from providing virtual currency services on regulated institutions. (Language)
Edited by: Ravindra Gupta
