Clarity on bitcoin

India needs a regulatory framework for cryptocurrencies

Indian investors must be looking for a clear policy stance on cryptocurrencies in the forthcoming Budget. Even though daily cryptocurrency trades worth Rs 35-40 crore are rupee-denominated, there is no clarity on the tax treatment; indeed, there have been threats of legislative action to ban these instruments. Since January 2020, bitcoin has gone up by over 300 per cent, while ethereum is up 650 per cent. The CC130 Index, which tracks the 30 most popular cryptocurrencies, is up 200 per cent. Despite the high face values, it is easy to trade small units. Bitcoin can be broken into a hundred