Simplified GST – Our Automated Solution For GST Compliance

Focus Point

Cryptocurrencies - Evolving Regulatory and Tax aspects

India has become one of the largest markets for Cryptocurrencies. Indians have parked nearly USD 6.6 billion¹ in cryptocurrencies until May this year, as compared to USD 923 million until April 2020. India ranks 11 out of 154 nations in terms of cryptocurrency adoption, as per blockchain data firm Chainalysis. While this growth has given Indian cryptocurrency exchanges a reason to celebrate and attract global investors, the regulatory framework around the same has always remained unclear and ambiguous. The Reserve Bank of India (RBI), in its Financial Stability Report 2013, warned the public against banking on Cryptocurrencies as they posed a challenge to the economy in the form of regulatory, operational, and legal risks. Later, the RBI, in its circular 'Prohibition on dealing in Virtual Currencies' dated 6 April 2018,² prohibited the entities regulated by it from dealing in/providing any