Nirmala Sitharaman, the Indian finance minister, announced that it isn’t the moment to make the final decision on whether cryptocurrencies should be legal or banned in this country.
However, the minister also pointed out that, in the meantime, the state continues to tax any income its citizens make from trading with cryptocurrencies.
Although it might seem reasonable to think that an income that is subject to tax is indirectly considered legal by the state, this is yet officially not the case. The reluctance of Indian authorities to officially legalize crypto trading causes a lot of fear in crypto circles that the country might ban crypto entirely.
On the other hand, some are hopeful that the state will rule in favour of digital assets, as the government previously announced that it considers introducing CBDC (Central Bank Digital Currency) by 2023.