ALSO READCryptocurrencies: Another Tulip mania? Amid Bitcoin mania, how browser-based cryptomining is back from the dead Bitcoins: Investors need to pay 20% advance tax on cryptocurrency earnings Bitcoin flourishes in India, despite China's cryptocurrency crackdown RoC halts registering new cryptocurrency exchanges under Companies Act
Popular cryptocurrency Bitcoin on Tuesday again beached the $11,000 level, rising more than 10 per cent from a low of $9,972.29, according to CoinDesk's Bitcoin price index. Despite volatility, the highs reached by the crypto in recent times is a clear gauge of how investors worldwide have taken fancy to Bitcoin and the possibility of returns it promises.
However, so far as India is concerned, investing in cryptocurrencies still falls in the grey area in the absence of clear regulations and guidelines.
A three-part Business Standard special series sheds some light on cryptocurrency trade, how crypto players are coping with uncertainties in India, cryptocurrency mining, the recent crackdown on cryptocurrency exchanges. Here is a snapshot of the three parts of the special series:
1. How India's crypto players are fighting to survive
Cryptocurrency players are surviving in a world of uncertainties, with no laws governing Bitcoins and other cryptocurrencies in India, and the financial system, including banks, are withdrawing support to them amid the government’s word of caution.
2. RoC halts registering new cryptocurrency exchanges under Companies Ac
In a recent blow to the cryptocurrency market, the Narendra Modi-led Union government halted the registration of new cryptocurrency exchanges, the platforms where investors can buy or sell Bitcoins, among other cryptocurrency. The piece explains how the budding platforms are coping with the restriction imposed by the Registrar of Companies under the Ministry of Corporate Affairs.
3. Investors need to pay 20% advance tax on cryptocurrency earnings
In the midst of all the uncertainties around cryptocurrency, there is some clarity on at least one aspect. Investors who have made a fortune selling the virtual currency will need to pay 20 per cent advance tax on the earnings to avoid any action by the income tax (I-T) department. This piece explains what other taxation aspects should be kept in mind if you are an investor in Bitcoins or own an exchange.