Cryptocurrency: Back To The Crypt?

For a newborn sector, finding a stable turf on which to grow can be a complicated affair when the world itself is in motion. Cryptocurrencies and the traditional economic system present exactly such a duality—paired in a difficult tango.

- M.G. Arun

Finance minister Nirmala Sitharaman’s budget speech threw some mottled light on an area of darkness. Both the nascent industry and the enthusiastic flock of investors it has attracted were only partly dismayed by the news that crypto trading would be taxed at 30 per cent. Yes, such a high rate was a dampener. But it also meant that, for the first time, the government seemed to recognise cryptocurrency as an asset class. A legitimisation of sorts, which went contrary to expectations that the Centre was planning to ban all cryptocurrencies, with the RBI raising serious concerns on how their unregulated nature and extreme volatility was adversely impacting the financial system.