Government will give so much time for cryptocurrency after banning

Cryptocurrency News: The government has started preparations to introduce the ‘Cryptocurrency and Regulation of Official Digital Currency Bill, 2021’ in the winter session of Parliament with an aim to ban all private cryptocurrencies in India. The number of people investing in cryptocurrencies in the country is also not less. In such a situation, rules are also being considered for the protection of these investors.

According to government officials, if the government makes a law to ban crypto, then investors investing in it can also be given time to exit the unregulated market.

have to pay tax

Officials related to the government’s preparations regarding the cryptocurrency bill said that along with enacting a law banning the use of private cryptocurrencies, the government is also looking at how to reduce the hassle of Indians investing in it. He said that such investors can be given time by the government to exit the market.

However, all gains from investments will be treated as income or capital gains and will be taxed appropriately. An official said that investors will have enough time to exit the unregulated market of crypto.

bill in winter session

The monsoon session of Parliament is starting from November 29. According to the information, the government may ban cryptocurrencies as a currency, but instead continue to allow it as an asset class such as mutual funds.

can get this much time

According to officials, investors are likely to be allowed a buffer of three months from the time the bill is introduced in Parliament and then passed by both the houses or from the date of imposition of the likely ban.

Digital currency to help criminals

There are fears that governments around the world are facing issues of terror-financing and money laundering, among which cryptocurrencies may also play a significant role. Even the International Intergovernmental Body, the Financial Action Task Force, has warned that digital currencies could create new opportunities for criminals to finance their illegal activities.

This is the reason why private digital currency cannot be allowed. But, if people want to move out after paying tax, they will be given a reasonable time.

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