#CryptoRegulation

India takes a middle stance, as it does not impose an explicit ban on cryptocurrencies, but it does not fully legalize them either. The government has imposed a 30% tax on cryptocurrency trading profits and a 1% tax deducted at source (TDS) on transactions exceeding certain thresholds. The regulatory environment involves multiple entities: the Reserve Bank of India (RBI), the Ministry of Finance, the Securities and Exchange Board of India (SEBI), and the proposed Indian Digital Currency Authority (DCBI). The Cryptocurrency and Official Digital Currency Regulation Bill of 2021 aims to ban private cryptocurrencies while allowing the issuance of a central bank digital currency (CBDC) by the Reserve Bank of India. The government supports blockchain technology but restricts the use of private cryptocurrencies due to concerns about money laundering and fraud.