Bitcoin legal or not? Supreme Court asks Centre to clarify position on crypto

The government has recently introduced a tax on virtual assets.

New Delhi: Supreme Court, on Friday (February 25), asked the central government to clarify its stance on its position on Bitcoin. The apex court has asked the government whether bitcoin is legal or not. 

Recently, Finance minister Nirmala Sitharaman, during the Union Budget 2022 presentation, had announced that cryptocurrency investors will have to pay a 30 per cent tax on gains from virtual assets such as cryptocurrencies or NFTs. Budget 2022 proposed to introduce section 115BBH to introduce a tax on gains from virtual assets. 

However, Sitharaman has also recently clarified that taxing virtual assets doesn’t mean that Bitcoin or any other cryptocurrency is legal in the country. 

In a conversation with Sudhir Chaudhary, Editor-in-Chief, Zee News, she reiterated that cryptocurrency or any digital assets should be inclusive as government backing is required for every currency to function in transparency. She also said that the explanation about crypto should be crystal clear. 

Meanwhile, the Indian government is currently working on a Bill to regulate cryptocurrency in India. The government had plans to introduce a bill on cryptocurrencies like Bitcoin during the Winter Session of Parliament in November-December 2021 but did not introduce it. Also Read: Russia-Ukraine War: Bitcoin donations soar for Ukrainian army

Moreover, the Reserve Bank of India is in favour of a complete ban on the speculative assets. Reserve Bank Deputy Governor Michael Patra, earlier this week, had said that cryptocurrencies hold no underlying value at all, and has also called them a threat to financial stability. Also Read: India has been focussing on 'aatmanirbharta' in its defence sector, says PM Modi