Cryptocurrency tax could hinder trade in digital assets

Cryptocurrency upheaval could be a blessing in disguise for the future of blockchain technology. [iStockphoto]

The Finance Bill, 2023 proposes to introduce Digital Asset Tax (DAT) at a rate of three per cent on the income derived from the transfer or exchange of digital assets.

The Bill defines a digital asset as anything of value that is not tangible and includes cryptocurrencies, token code and numbers held in digital form, which can be exchanged with or without consideration and can be transferred, stored or exchanged electronically.