Asyargo offers a platform to exchange digital assets (cryptocurrency) for agricultural goods and services, and promotes collaborative software for profit. Working with blockchain enables it to be open to global participants and avoid involvement of government intermediaries in transactions.
Legal Status of Crypto in India
2021: The Supreme Court rules1 that RBI circular (6th April, 2018) prohibiting banks, NBFCs, and payment system providers from dealing with virtual currencies is unconstitutional and overturns it.
March 2021: Companies Act is amended asking businesses to disclose their cryptocurrency investments and any profit or loss associated with the transaction from the next financial year. Owners of virtual currencies must disclose the quantity of their holdings and the specifics of any deposits or advances received to trade or invest in crypto.
2022: Union Budget says that income from transfer of any virtual digital asset shall be taxed at the rate of 30%. Also suggesting that bitcoin transactions be taxed 1% at source. However, taxing a virtual digital asset does not imply that cryptocurrency are now recognised legally (MoF, 2021).
Income Tax is levied on all legitimately or unlawfully generated incomes however, the IT dept. penalises those earning through illicit means. Till date, no criminal investigations have been opened against investors, traders, or service providers for dealing with virtual currency.
April 2022: Cyber Security Directions say custodian wallet providers, virtual asset service providers, and virtual asset exchange providers are required to keep all customer information on file (KYC) and maintain transaction records for a period of five (5) years. Hinting that virtual assets may stay running and relevant to the Indian financial market for at least another five years, indicating a “permitted de facto approval” for the same.
