FM Sitharaman: Global Collaboration Key for Crypto Regulation; India Intensifies VDA Monitoring

• Finance Minister Nirmala Sitharaman stated that effective cryptocurrency regulation requires significant international collaboration due to its borderless nature.
• India allows crypto as Virtual Digital Assets (VDAs) but does not regulate the industry, taxing gains at 30% plus cess and applying a 1% TDS on transactions.
• The government identified ₹888.82 crore in undisclosed VDA income and attached/seized ₹4189.89 crore in crypto-related PMLA cases, leading to 29 arrests.
• The NUDGE campaign sent over 44,000 communications to taxpayers who did not report VDA investments in their Income Tax Returns.
• The government is strengthening monitoring and investigation of VDA transactions to track criminal activities, despite avoiding complete regulation.

Why It Matters: Your crypto investments face global regulatory challenges and increased scrutiny.