NPCI has given a big statement amid reports of buying cryptocurrency through UPI. NPCI has stated that it is not aware of any virtual digital asset exchange using Unified Payments Interface (UPI) for any transaction.
New Delhi: The National Payments Corporation of India (NPCI) has categorically stated that it is not aware of any virtual digital asset exchange using the Unified Payments Interface (UPI) for any transaction. National Payments Corporation of India (NPCI) would like to clarify that we will not be able to accept any crypto exchange using UPI in light of some recent media reports regarding the purchase of cryptocurrencies using UPI. There is no information about it.’
There were reports of buying cryptocurrency through UPI
This statement of NPCI comes after media reports of buying cryptocurrency options through UPI. Meanwhile, an official said the 30 percent’ crypto tax’ proposed in the Union Budget has come into effect from April 1. Thereafter, the Income Tax Department will keep a close watch on every transaction of the crypto exchange.
Keeping a close eye on cryptocurrency exchanges
Officials said the Central Board of Direct Taxes (CBDT) has directed the Income Tax officials to do the same. A senior finance ministry official said, “Our officials will keep a close watch on cryptocurrency exchanges,
Business up to Rs 1 lakh crore
Officials said that out of the 40 cryptocurrency exchanges, 10 are primarily dealing in the sale and purchase of cryptocurrencies and their turnover is between Rs 34,000 crore and Rs 1 trillion. He added that apart from crypto exchanges, IT officials will also track crypto transactions through reporting entities. He further added that by July 1, 2022, when the department will start deducting 1 percent TDS on crypto transactions, it will become easier for the department to track crypto transactions.