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The Centre might not introduce the cryptocurrency bill in the upcoming Budget session since its keen on conducting more discussions and building consensus with the regulatory framework. The government is also waiting for the pilot launch of the Reserve Bank of India’s (RBI) digital currency, anticipated in a few months.
The Centre is determined about the bill; however, it is still keen on having more discussions with the necessary stakeholders to have a strong view regarding the policy. The crypto bill might not be introduced in the 2022 Budget session since it is a complex subject and will need more time. Also, the legislative framework concerning virtual currencies will require an amendment of a few existing laws.
RBI has also escalated concerns regarding private digital currencies, quoting financial stability and macroeconomic issues. After the digital currency’s pilot launch, the government is also waiting for RBI’s technical inputs.
There could also be another reason for the delay in introducing the crypto bill; there is a lack of consensus regarding the taxation framework concerning virtual currencies. The government could give a few inputs for investors in crypto assets regarding taxation in the 2022 Budget; however, a full-fledged taxation framework of the crypto industry is still in progress. Currently, there are no provisions in the law to tax gains earned via crypto assets and needs more clarity.
For any clarifications/feedback on the topic, don’t hesitate to contact the writer at bhavana.pn@cleartax.in.
Bhavana is a Senior Content Writer handling the GST vertical. She is committed, professional, and has a flair for writing. When away from work, she enjoys watching movies and playing with her son. One thing she can’t resist is SHOPPING! Her favourite quote is: “Luck is what happens when preparation meets opportunity”.
