FM Sitharaman says taxing crypto doesn't mean legitimacy; 'Will decide after consultation'

taxing of cryptocurrency does not mean its legitimacy, Finance Minister Nirmala Sitharaman h told Republic Media Network's Editor-in-Chief Arnab Goswami in an exclusive conversation. She h also stated that crypto coins such as Ereum, Bitcoin and NFTs will never become legal tender.

When asked wher taxation is an implicit legitimisation of crypto, Sitharaman explained, " question of legitimacy of digital assets has yet not been broached. Now we are only taxing, beyond this we will decide on regularisation or ban only after consultations are over."

Finance Minister Sitharaman said that she does not see any currency outside domain of sovereign. "refore, if anything develops digitally outside, I refrain from calling m currency," she said.

Finance Minister ded that currency is domain of government or authorised central bank. Union Minister also informed that taxing operates on any kind of product for a profit. "re is a tax which has been labelled for transactions emerging out of digital operations, and we have also put a TDS on m. That is where we are."

Discussions with RBI on crypto, digital currency: Sitharaman

On Monday, Nirmala Sitharaman said that discussions are on with Reserve Bank of India (RBI) on private cryptocurrency and central bank-backed digital currency (CBDC) and a decision will be taken after due deliberations.

In her budget speech, Sitharaman h announced that Digital Rupee would be issued by RBI in coming fiscal. She h announced that about 30% tax will be levied on gains me from any private currencies. 

"On crypto, I have said that we are in process of consultation. Whatever decision government is going to take, will be after consultation," she said.

Last week, Union Minister of State (MoS) for Finance Dr Bhagwat Krishnarao Kar h also said that cryptocurrencies are not legal in country and nothing could be said about what will happen in segment in future.

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