Is cryptocurrency legal in India? Here is what Finance Secretary TV Somanathan said

New Delhi: Since the inception of cryptocurrencies, it has gained a lot of attention among people. Many people are investing in it and also using it for transactions. After the Finance Minister Nirmala Sitharaman announced a 30% tax on virtual digital asset in her Budget speech on Tuesday, many people are searching for an answer to a question – is crypto legal in India?

In her speech, Finance Minster did not reveal much about the legality of cryptocurrencies. As a result, thousands of investors in the country are afraid of losing their money.

However, Finance Secretary TV Somanathan on Wednesday briefed about crypto and its legality. That gives some details about the question – is cryptocurrency legal in India?

He said that the Reserve Bank of India will back the digital currency but it does not mean all digital rupees are legal tender. ”Rest all are not legal tender, will not, will never become legal tender,” added Somanathan.

Digital currency will be backed by RBI which will never be default. Money will be of RBI but the nature will be digital. Digital rupee issued by RBI will be a legal tender. Rest all aren’t legal tender,will not,will never become legal tender:Finance Secy TV Somanathan

(File pic) pic.twitter.com/Cko0e4753X

— ANI (@ANI) February 2, 2022

As bad news for Bitcoin, and Ethereum or NFT holders, Mr Somanathan said that they would never become legal tender.  ”You can buy gold, diamond, crypto, but that will have not have the value authorization by government,” added Somanathan.

Bitcoin, Ethereum or NFT will never become legal tender. Crypto assets are assets whose value will be determined between two people. You can buy gold, diamond, crypto, but that will have not have the value authorization by govt: Finance Secretary TV Somanathan

— ANI (@ANI) February 2, 2022

Furthermore, he advised people not to use private crypto as ”there is no guarantee whether your investment will be successful or not, one may suffer losses and government is not responsible for this.”

People investing in private crypto should understand that it does not have the authorisation of govt. There is no guarantee whether your investment will be successful or not, one may suffer losses and govt is not responsible for this: Finance Secretary TV Somanathan

— ANI (@ANI) February 2, 2022