‘Not Banned, But Not Backed Either’: Piyush Goyal Explains India’s Stance On Cryptocurrencies | Cryptocurrency News

Commerce Minister Piyush Goyal. (Piyush Goyal/X)

Union Commerce Minister Piyush Goyal on Monday, October 6,  clarified that the Indian government neither promotes nor bans cryptocurrency but has chosen to regulate it primarily through heavy taxation. “We have not been encouraging cryptocurrency, which does not have sovereign backing or is not backed by assets like the federal bank or local currency,” Goyal told news agency ANI during his two-day visit to Doha, where he is leading a business delegation to boost trade and investment ties between India and Qatar.

Government’s stance on crypto

Goyal stressed that India’s focus is on protecting investors and maintaining financial stability. “As far as cryptocurrency, which is not backed by the Central Government, while there is no ban as such, we are taxing it very heavily. We don’t encourage it because we don’t want anybody to be stuck at some point with a cryptocurrency that has no backing and nobody at the backend,” he said.

The minister clarified that the government’s priority lies in developing a sovereign digital currency — a digital rupee backed by the Reserve Bank of India (RBI). This proposed CBDC will be designed for faster transactions, reduced paper consumption, and blockchain-enabled traceability to ensure transparency and compliance.

“India has also announced that we will be coming out with a digital currency, which will be backed by an RBI guarantee like regular currency. Our idea is that this will make transactions easier, faster than the banking system, and traceable,” Goyal added.

Heavy taxation on non-backed crypto

India has imposed a 30% tax on income from the transfer of virtual digital assets (VDAs) — including cryptocurrencies and NFTs — announced in the Union Budget 2022-23. The tax applies irrespective of whether the investor makes a profit or incurs a loss elsewhere in their portfolio.

Additionally, a 1% Tax Deducted at Source (TDS) applies to all crypto transactions above ₹10,000, effective July 1, 2022, to help track crypto activity and ensure compliance. Losses from the sale of VDAs cannot be offset against any other income, further tightening the tax regime.

Goyal’s remarks underscore India’s cautious approach to cryptocurrency while focusing on building a sovereign, regulated digital rupee that combines the benefits of blockchain with government-backed security.