Crypto paper soon; no need to alter growth forecast: Ajay Seth, secretary of economic affairs

economictimes.indiatimes.com:

cryptocurrency soon, though a law on the digital assets is likely to take more time, secretary of economic affairs Ajay Seth has said. On the sidelines of a finance ministry event, the secretary also said there is no case for revising growth estimates downwards. He said inflation should moderate soon and that the government is well-prepared for any shock. Speaking about cryptocurrency, Seth on Monday told reporters, «Our consultation paper is fairly ready. We have gone into a deep dive into this.» He did not mention when it is likely to be put out. Sources, though, told ET that it can be expected in August.

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The economic affairs secretary said a law on cryptocurrencies may take some more time as India is waiting for an international framework on it and is closely engaging with the International Monetary Fund and the World Bank. In December last year, during the winter session of Parliament, the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, was listed to provide a framework for digital currencies. The bill wasn't introduced. Subsequently, in the budget for 2022-23, the government imposed a 30% tax on gains made from virtual digital assets, along with a 1% tax deducted at source on all such transactions. However, the Centre clarified that taxation does not mean legal validity for cryptocurrencies. The government has since called for a global framework for taxing virtual digital assets. The Reserve Bank of India (RBI) has opposed private digital currencies. The latest consultation paper is expected to provide some clarity on the