Q. Consider the following statements:
1.Trading between cryptocurrencies and fiat currencies or among cryptocurrencies and other such services cannot be investigated by agencies such as the Enforcement Directorate (ED) and the Income Tax department.
2.The Indian government has decided to not accept cryptocurrencies as currencies but it treats them as virtual digital assets.
Select the correct option using the code given below:

[A] 1 only

[B] 2 only

[C] Both 1 and 2

[D] Neither 1 nor 2

Answer: B
Notes:

Explanation –

Statement 1 is incorrect. Trading between cryptocurrencies and fiat currencies or among cryptocurrencies and other such services can be investigated by agencies such as the Enforcement Directorate (ED) and the Income Tax department.

Statement 2 is correct. The Indian government has decided to not accept cryptocurrencies as currencies and it treats them as virtual digital assets.

Source: ForumIAS