Bitcoin, Ethereum or NFT will never become legal tender says Finance Secy

New Delhi. The country’s Finance Secretary TV Somanathan made a big deal on Wednesday about cryptocurrencies. Somanathan said that the world’s most prevalent cryptocurrency Bitcoin, Ethereum or non-fungible tokens, i.e. NFT, can never be declared a legal currency or legal tender. He said that the crypto asset has not received any approval from the government and its prices are set in a private manner.

However, Somanathan said that the digital currency brought by the Reserve Bank would never be a default. The digital rupee issued by RBI will be a legal tender.

“Bitcoin or Ethereum or NFT..These will never be declared legal tender. Crypto asset is an asset whose price or value is determined between two people. He said that you buy gold, buy diamond or buy crypto, but the government never decides its prices.”

 


Advising to avoid investing in crypto, Somanathan said, ” people investing in private crypto should understand that it does not have government authorization. There is no guarantee that your investment will be successful or not, losses may occur and the government is not responsible for this.”

Crypto is a kind of betting’
Regarding the tax on crypto, Somanathan said, ” crypto is a speculative transaction, so we are taxing it at 30 per cent. No one knows the actual value of bitcoin or Ethereum. Their rate fluctuates daily. Those earning through crypto will now have to pay 30 per cent. This is the new policy of the government.”

The finance secretary said that this tax is not only for crypto, it is for all speculative income. For example, if I take the horse race earnings, it is also taxed at 30 per cent. There is already 30 per cent tax on any speculative transaction. So we have decided to tax cryptocurrency at the same rate.”

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