Q. Consider the following statements regarding Virtual Digital Assets (VDAs):
1.India currently has a comprehensive legal framework governing Virtual Digital Assets.
2.At present, Virtual Digital Assets in India are subject to taxation and anti-money laundering provisions.
Which of the statements given above is/are correct?

[A] 1 only

[B] 2 only

[C] Both 1 and 2

[D] Neither 1 nor 2

Answer: B
Notes:

Explanation:

  • Statement 1 is incorrect: India does not yet have a comprehensive legal framework regulating Virtual Digital Assets (VDAs).
  • Statement 2 is correct: VDAs are currently regulated only for limited purposes such as taxation under the Income-tax Act and anti-money laundering (AML) compliance under the Prevention of Money Laundering Act (PMLA).

Source- IE

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