In her recent budget speech, Finance Minister Nirmala Sitharaman announced an important change to how the government looks at money that hasn’t been reported properly. She suggested that “virtual digital assets”—which include cryptocurrencies—should now be seen as hidden income. This is a reaction to concerns that some people are using unregulated cryptocurrencies to hide illegal activities.
The new budget plans to officially include these virtual digital assets in the definition of undisclosed income. Also, the government is saying that if there’s a need to check someone’s finances, they will complete these checks more quickly—within 12 months after the quarter ends.
This decision follows two years after India made rules to prevent money laundering in the cryptocurrency sector. The Finance Ministry explained that regulations for money laundering now cover buying and selling cryptocurrencies as well as services connected to them. Additionally, there are strict tax rules for cryptocurrency trading.
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