The crypto market has been booming since Bitcoin turned the fortunes its owners. Those who owned the coin turned into billionaires. The millennial generation in India is already investing in Crytos in huge numbers. Presently there is an ambiguity whether the investment is permitted in India. It is not considered legal tender in the country. The phenomenal increase in the transactions of virtual digital assets made the government impose a tax of 30 percent on the income from these assets. The decision has also made the government recognize the virtual digital currencies like Bitcoin, Ethereum, Litecoin,Ripple, Cardano and many more.
From the users point of view the currency has the following pros and cons:
|Pros of Crypto Currency||Cons of Crypto Currency|
|High return potential||Highly Volatile|
|User Anonymity||No government regulations|
|Independence from central authority||No refund|
|Worldwide transferable at high speed||Limited use|
|Protection from Payment fraud||Not Regulated by SEBI|
Crypto currency is not considered to be a legal tender in India but it is also not illegal to invest in the Cryptos. Because of this there are a lot of financial irregularities happening.
According to the Financial experts the current investment trend in the crypto’s is leading to a lot of irregularities including money laundering. “A lot of Indian funds are going abroad through Crypto currency which is leading to money laundering” Says Mangat.Rai.Garg a chartered Accountant by Profession.
The present scenario in which trading in Cryptos is happening is not under the SEBI preview. There are a lot of P2P (Peer to peer) wallets in the country which are trading in the Crypto currencies. Binance, Wazirx, Zengo, Ledger, CoinDCX are just some of the popular ones.
“If the government asks the banks through which the money is being invested in these currencies to go for 26 AS mapping and deducts 30 per cent tax then the problem could be easily resolved. The tax collections of the country will easily go up if this is done” suggests Mr.Garg
The Crypto currency has been advocated by the leading business tycoons like Eon Musk the founder of Tesla and Space X and Jack Dorsey founder of Twitter and they have been saying that “Crypto is the currency of the future.”