**This is Modi Government’s Stance on Cryptocurrency in India**
*By Dwaipayan Roy | Oct 07, 2025 | 04:24 PM*
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**Union Commerce Minister Piyush Goyal Clarifies Government Position**
Union Commerce Minister Piyush Goyal recently clarified the Indian government’s stance on cryptocurrency during his two-day visit to Doha aimed at boosting trade and investments between India and Qatar.
Goyal emphasized that the government neither promotes nor discourages cryptocurrencies but imposes taxation on them. “We have not been encouraging cryptocurrency, which does not have sovereign backing or which is not backed by assets,” he stated.
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**Heavy Taxation Instead of a Ban**
Unlike some countries that have banned cryptocurrencies outright, India has chosen a different approach. Goyal explained that the government intends to regulate cryptocurrencies primarily through heavy taxation.
“As far as cryptocurrency, which is not backed by the Central Govt, while there is no ban as such, we are taxing it very heavily,” he said. This strategy aims to protect people from falling victim to unbacked cryptocurrencies lacking any formal support system.
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**India’s Plan to Introduce a Sovereign Digital Currency**
In addition to regulating private cryptocurrencies, India plans to roll out a sovereign digital currency backed by the Reserve Bank of India (RBI). This new digital rupee will share characteristics similar to stablecoins and will feature blockchain-based traceability to ensure transparency and compliance.
“Our idea is that this will only make it easier to transact,” Goyal remarked regarding the upcoming digital currency.
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**Clear Tax Framework for Virtual Digital Assets**
India has established a defined tax framework for virtual digital assets (VDAs), such as cryptocurrencies and NFTs, despite not granting them legal tender status.
In the Union Budget 2022-23, the government introduced a 30% tax on income earned from the transfer of VDAs. This tax rate applies regardless of any profit or loss from other transactions in the taxpayer’s portfolio. Additionally, from July 1, 2022, a 1% Tax Deducted at Source (TDS) is levied on all crypto transactions above ₹10,000.
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**Summary**
To summarize, the Modi government’s approach to cryptocurrency emphasizes regulation through significant taxation rather than prohibition. While discouraging unbacked cryptocurrencies, the government is moving forward with its own digital currency initiative to facilitate easier and more transparent transactions in India’s financial ecosystem.
https://www.newsbytesapp.com/news/business/we-are-not-encouraging-cryptocurrency-says-piyush-goyal/story