Cryptocurrency firms to clear the air

The crypto industry is willing to work with the government towards addressing its concerns even as the taxation of cryptocurrencies continues to pinch investors amid global selloffs.

Finance minister Nirmala Sitharaman in a written reply to the Lok Sabha on Tuesday pointed out that any legislation to regulate or ban cryptocurrencies can be effective only after “significant international collaboration” to prevent regulatory arbitrage.

The note says the RBI is of the view that cryptocurrencies should be prohibited. The government’s move shows it is in no hurry to ban cryptos — especially when it has already imposed a 30 per cent tax plus surcharge and cess on the transfer of any virtual digital assets.