Bengaluru, Feb 1 : Batting for a 30 percent tax on income earned on the transfer of virtual digital assets, Karnataka Chief Minister Basavaraj Bommai Today said cryptocurrency is still in a very nascent stage and next course of action should be taken on the issue only after a careful study. “Crypto currency is still in a very nascent stage. It has to be observed, looked into and studied. Only after a careful study, we can be able to assess what is right or wrong (about cryptocurrency),” he told reporters, replying to a query on the government imposing a 30 percent tax on the transfer of virtual digital assets. Union Finance Minister Nirmala Sitharaman has not specified whether cryptocurrency falls under the ambit of virtual digital assets, which will be heavily taxed. However, heavy taxation on earnings through transfer of crypto assets is perceived as an attempt by the Narendra Modi government to regulate cryptocurrency. On November 13 last year, PM Modi had flagged off concerns of crypto markets becoming avenues for money laundering and terror financing. Speaking for the first time at the Sydney Dialogue, Modi had urged all democratic nations to unite to ensure that cryptocurrencies do not play in the wrong hands. Thereof, the central government listed The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 for passage in the Winter session of Parliament, but deferred for the foreseeable future. The bill had sought to prohibit all private cryptocurrencies in India except for certain exceptions to promote the underlying technology of cryptocurrency and its uses. (UNI)