Good morning to everyone, I would like to express my gratitude to the principal, the teachers, and my friends for letting me tell you about cryptocurrency. Cryptocurrency is a virtual or digital currency that is highly secured by cryptography or encryption techniques. Bitcoin is the most popular cryptocurrency, having crossed $63000 in April 2021. There have been several new cryptocurrencies introduced, including Ethereum, Solana, Litecoin, Cardano, Namecoin, etc.
Advantages include easy funds transfer, fewer transaction fees, and an unprecedented level of anonymity. The Government of India has established regulations for dealing with and accepting cryptocurrencies, proposing a flat capital gains tax rate of 30% on cryptocurrency profits and a 1% tax deducted at source (TDS) on all crypto-related transactions.
Taxing cryptocurrencies does not make them legal, and they are still unregulated in India. Regulation of cryptocurrencies is needed to prevent serious problems and to protect unsuspecting investors from excessive market volatility and possible scams. Governments should regulate the trading of cryptocurrencies by including stringent KYC norms, reporting, and taxation. Thank you.
