India taxes crypto 30% while issuing central bank digital currency directive

Finance minister Nirmala Sitharaman

The Indian government has directed the country’s central bank to begin developing a central bank digital currency (CBDC) while imposing new taxes on crypto assets.

Finance minister Nirmala Sitharaman unveiled a set of new taxes on crypto asset transactions in her budget speech yesterday, announcing that the government will take 30% of "any income from the transfer of any virtual, digital asset", as well as a "tax deducted at source" of 1%. Sitharaman also proposed a "digital rupee" should be issued by India's central bank, "using blockchain and other technologies". "Introduction of a central bank digital currency will give a big boost to the digital economy," Sitharaman said in a speech to parliament. "Digital currency will also lead to a more e...