(Bloomberg) —
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India announced plans to start a digital currency and tax crypto assets, as the country keeps pace with the global move toward virtual financial instruments.
Income from the transfer of any virtual digital assets will be taxed at 30%, Finance Minister Nirmala Sitharaman said in her budget speech on Tuesday.
The move was prompted by India’s rapid adoption of virtual coins, putting the nation a step closer to regulating such investments following several warnings from the central bank about the risks of money laundering, terrorist financing and price volatility.
“There’s been a phenomenal increase in transaction in virtual digital assets,” Sitharaman said. “The magnitude and frequency of these transactions have made it imperative to provide for a specific tax regime.”
Read a QuickTake explainer on India’s handling of crypto
The finance minister also announced the launch of a central bank digital currency in the financial year starting April to usher in cheaper, more efficient currency management. The Reserve Bank of India has been…
