The Supreme Court has sought clarity regarding the lagal status of Bitcoin in the country from the government.
The issue came out in a criminal case where the accused is facing charges of defrauding people in a crypto-currency scam. A bench led by Justice D.Y. Chandrachud granted him interim protection from arrest till the next hearing but sought more clarity on the legal status of crypto currency. Justice Surya Kant told ASG Aishwarya Bhatti, who was appearing in the case “You must clarify the legal position (on bitcoins).”
However, the Bench has directed the accused to meet the investigating officer (IO) and cooperate in the investigation. The IO in turn was directed to submit a fresh status report on the case in four weeks.
Regarding digital currency, the Finance Minister had announced in the budget that RBI would designate a new digital currency. A crypto currency bill is also being drafted to regulate trading in cryptocurrency. The finance minister taxed crypto trading transactions at 30 per cent. While, the finance secretary had clarified later that crypto currency will never be legal tender.
Earlier, experts have sought to bring specific provisions for Crypto Currency taxation.