Speaking at the India Today Conclave 2024, Finance Minister Nirmala Sitharaman said crypto assets cannot be legal currencies.
Finance Minsiter Nirmala Sitharaman at the India Today Conclave 2024. (Photo: India Today/Rajwant Rawat)
New Delhi,UPDATED: Mar 15, 2024 13:55 IST
Finance Minister Nirmala Sitharaman on Friday made it clear that cryptocurrency assets cannot be currencies, saying that the government's position on such assets has always been clear. She was responding to a question during a session at the India Today Conclave 2024.
When asked whether the government will reassess its position on cryptocurrencies amid the recent surge, she said, "Its position has always been this, that assets created in the name of crypto can be assets for trading, assets for money making and assets for many other things."
"We haven't regulated them then, and we haven't regulated them now. But they cannot be currencies and that's the Government of India's position," she added.
Full coverage of Conclave 2024
"Currencies are to be issued with a fiat of the government or the central bank of the day. And it is still unregulated in India. That is why we thought it fit to raise it in the G20 forum, because as it is so technology-driven, it will have a bearing on cross-border payments," Nirmala Sitharaman added.
"If one country regulates it and others don't, it will be an easy way of moving money, round-tripping, funding drugs or even terrorism," she added, highlighting the ways unregulated cryptocurrencies can be misused.
On household savings, fuel price cuts and electoral bonds
She spoke about several other aspects of the Indian economy, including consumer spending and household savings. When asked about shrinking consumer spending and lower household savings, Nirmala Sitharaman said the government is trying to boost small savings by offering better interest rates.
However, she highlighted that more Indians are investing in the stock markets and not just mutual funds, adding that money flowing into the stock market has substantially increased. "In fact, India stands out as one of those countries, where retail investors are directly going to stock market," she added.
Sitharaman also spoke on the recent cuts in LPG and fuel prices, adding that they are aimed at helping the public and are not influenced by the upcoming elections, despite assertions made by opposition parties.
Moreover, she dismissed speculations regarding the connection between probe agency raids and electoral bonds, labeling them as "assumptions."
Her remarks came in response to the data released by the Election Commission (EC) from the State Bank of India, indicating that 14 of the top 30 companies that purchased electoral bonds faced scrutiny from central or state probe agencies.
Additionally, Sitharaman questioned the notion of the previous systems being flawless, suggesting that they may not have been entirely perfect.
Published By:
Koustav Das
Published On:
Mar 15, 2024
FAQs
Speaking at the India Today Conclave 2024, Finance Minister Nirmala Sitharaman said crypto assets cannot be legal currencies.
Is crypto taxable in India? ›
In India, cryptocurrencies are classified as virtual digital assets and are subject to taxation. Gains made from trading cryptocurrencies are taxed at a rate of 30% (plus 4% cess) according to Section 115BBH.
Which crypto exchange is legal in India? ›
In conclusion, the best crypto exchanges in India include Mudrex, CoinDCX, CoinSwitch, WazirX, ZebPay, and BitBNS based on several factors like ease of use, security, fees, coin availability, and more.
Which is the best cryptocurrency in India? ›
1. Bitcoin (BTC) Bitcoin investment in India has become increasingly popular, and it's no surprise why.
What will happen to crypto in 2024? ›
The 2024 Bitcoin halving, anticipated to drive prices up significantly, highlights the importance of Bitcoin in the crypto world. This event may lead to increased adoption, new regulations, and global financial system impacts.
Which crypto is best for 2024? ›
Top 10 Cryptos in 2024
| Coin | Market Capitalization | Current Price |
|---|
| Bitcoin (BTC) | $1.30 Trillion | $66.221 |
| Ethereum (ETH) | $390 Billion | $3,254 |
| Binance Coin (BNB) | $86.3 Billion | $577 |
| Solana (SOL) | $69 Billion | $154.53 |
6 more rowsFirst off, owning and trading Bitcoin (and other cryptocurrencies) is legal in India. The Reserve Bank of India (RBI) classifies cryptocurrencies as "virtual digital assets" (VDAs). This indicates recognition for tax purposes, but they are not considered legal tender.
Why was Binance banned in India? ›
In January, Binance was among nine offshore cryptocurrency platforms to be prohibited from operating in India through web addresses and mobile applications. The government's action was in response to the platforms' failure to comply with FIU and PMLA guidelines.
Does India impose 30% tax on crypto? ›
In February 2022, the government had decided to impose a 30 per cent tax on income from cryptocurrencies and a one per cent TDS on all crypto transactions. Companies believe these strict taxation norms have forced Indian crypto users to migrate to non-compliant foreign exchanges, which pose a risk to their investments.
What is the safest crypto exchange? ›
Top Crypto Exchanges
| Exchanges | SECURITY RATING |
|---|
| 1 | Crypto.com Exchange | AAA |
| 2 | Kraken | AAA |
| 3 | WhiteBIT | AAA |
| 4 | Cryptology | AAA |
116 more rowsCryptocurrency exchanges like Binance, Kraken, Kucoin and others were banned in India by the FIU. The Director FIU IND wrote to the Secretary of Meity to block these exchanges as they were illegally operating without following the provisions of the PML Act in India.
What is the name of the Indian cryptocurrency? ›
The Crypto Indian Coin (CIC) is a fully decentralized cryptocurrency project belonging to the Crypto Indian platform. The project aims to provide customers with decentralized farming services, personalized financial solutions, staking pools, and various interest models and earning opportunities.
Which crypto can give 1000x in 2024? ›
The 1000x GameFi Token of the 2024 Bull Market
The increasing popularity of blockchain-based games and the surge in trading volume echo the sentiment that GameFi tokens like PIKA could see up to a 1000x increase in value before the year ends.
Which is the No 1 crypto broker in India? ›
Best India crypto exchanges
| Exchange | Cryptocurrencies available | Payment methods |
|---|
| CoinDCX | 100+ | UPI, Debit/Credit Card |
| Bitbns | 400+ | UPI, Bank, P2P USDT |
| Mudrex | 150+ | UPI , USDT, Bank Transfer |
| Coinswitch | 170+ | NEFT, RTGS, IMPS |
5 more rowsIn turn, the entire cryptocurrency market could be pulled much higher again making it a particularly exciting time for crypto investors.
- Cryptos With Explosive Potential: Ethereum (ETH-USD) ...
- XRP (XRP-USD) ...
- Cryptos With Explosive Potential: Cardano (ADA-USD) ...
- Dogecoin (DOGE-USD) ...
- Shiba Inu (SHIB-USD) ...
- NEAR Protocol (NEAR-USD)
First off, owning and trading Bitcoin (and other cryptocurrencies) is legal in India. The Reserve Bank of India (RBI) classifies cryptocurrencies as "virtual digital assets" (VDAs). This indicates recognition for tax purposes, but they are not considered legal tender.
What is the crypto regulation 2025? ›
In 2025, the IRS will begin increasing its oversight of cryptocurrency transactions by requiring brokers to report investor sales and exchanges tied to such transactions.
What will happen to crypto in India? ›
After the elections, the new government will have to have regulations in place for crypto. India is a signatory to the Delhi declaration of the G20 Summit that happened in Delhi, where the FIU roadmap clearly spells out that all G20 countries have to have crypto regulation in place by 2025.
What is the legal age to invest in cryptocurrency in India? ›
The most popular way to buy cryptocurrency is through a centralized exchange like Coinbase or Binance.US. These exchanges allow you to deposit U.S. dollars and purchase crypto. But most exchanges require registrants to be at least 18 years of age.
