The initial response of the government on the rise of cryptocurrency during the period 2013-17, was one of extreme caution. The RBI issued a series of circulars notifying the public about cryptocurrency not being legal tender and the...
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September, 2023
The consensus declaration emphasized the swift implementation of the Crypto-Asset Reporting Framework (CARF) and amendments to the Common Reporting Standard (CRS). CARF, which the Organisation for Economic Cooperation and Development (OECD) initiated in 2022, aimed to enhance tax authorities’ access to tax-relevant information on crypto transactions.
March, 2023
Any person or business carrying on activities such as exchange between VDAs and fiat currencies, exchange between one or more forms of VDAs, transfer of VDAs, safekeeping or administration of VDAs or instruments enabling control over VDAs, and participation in and provision of financial services related to an issuer’s offer and sale of a VDA would be considered as a ‘reporting entity’. Reporting entities are bound to follow strict record maintenance standards, KYC norms, and additional compliance obligations.
December, 2022
The Bill introduced a tax regime for transactions relating to Virtual Digital Assets (VDAs), which includes virtual currencies. This taxation system subjected the transfer of any virtual currency/cryptocurrency asset to be subject to 30% tax deduction, with a 1% Tax Deducted at Source (TDS) on payments towards virtual currencies beyond Rs. 10,000 a year. The Bill also disallowed any losses from transfer of a VDA to be set-off against the income earned from another.
May, 2021
The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021was slated to be tabled in the Lok Sabha winter session but was ultimately not introduced
March, 2020
The bench observed that the RBI had failed to find evidence of how activities of virtual currency exchanges adversely impacted entities regulated by RBI and deemed the Central Bank’s stand as ‘disproportionate’. The Court also highlighted that the Inter-Ministerial Committee in its initial report had considered a ban to be an extreme tool and had instead favoured regulatory measures with a proposal for a new law.
February, 2019
While banning the use of cryptocurrencies as legal tender, and prohibited mining, buying, holding, selling, and dealing in issuance, disposal or use of cryptocurrency, the Bill recognised the importance of the underlying Distributed Ledger Technology (DLT) and permitted its use for experiment, research, or teaching.
May, 2018
April, 2018
The circular prohibited entities regulated by the RBI, from dealing in virtual currencies or providing services to any person or entity dealing with or settling VCs. Such services include maintaining accounts, registering, trading, settling, clearing, giving loans against virtual tokens, accepting them as collateral, opening accounts of exchanges dealing with them and transfer / receipt of money in accounts relating to purchase/ sale of VCs.
December, 2017
December, 2017
November, 2017
February, 2017
December, 2013
