Cryptocurrency ? What is the Stand of Govt on it and its taxation

Presently there is no regulation governing cryptocurrencies in India.

During parliament session, the government has responded that if there was a legislative proposal regarding cryptocurrencies and their trading, , it would be introduced in due course. Finance Minister N. Sitharaman has said that the government will keep an open mind with respect to cryptocurrencies, given that it offers the scope for several promising innovations.

Even in the absence of a policy framework, cryptocurrency exchanges such as WazirX have developed robust systems that allow people to buy and sell cryptocurrencies in a seamless manner.

Experts say that the government may recognize cryptocurrency as an asset, like real estate, stocks or gold. This means that the government may levy capital gains tax on any profits made after selling cryptocurrencies, just as one does after selling real estate or stocks.

Finally, like all investments, trading in cryptocurrencies is subject to market risks. To be on the safe side, you should invest only as much as you can afford to lose.