India is reportedly considering to regulate crypto as a commodity
Indian government might be looking to develop a juridical structure for crypto-based digital currencies as "assets" as early as February.
According to the report from the Indian news outlet Business Today, authorities with the country’s Finance Ministry said the potential legal framework would treat cryptocurrencies closer to commodities than currencies. If the legislation comes to fruition, it would represent a different approach than an outright ban on digital assets in the nation, which some Indian legislators have reportedly been considering.
The authorities added any law cryptocurrencies in the nation would almost come around the time the government submits the Union Budget on Feb. 1, on schedule to take effect before the next fiscal year. They added they were graceful with the Reserve Bank of India (RBI) to work out the details of any crypto legal structure.
However, labeling crypto as an "asset" under the law would almost certainly have tax suggestions for retail investors and exchanges in the country. The Tax Department of India was reportedly checking out taxing crypto income through trades and exchanges, yet no choice has been reached from anybody in government at the time of publication.
With the 1.4 billion population, India has decided to build up a concrete legal framework for cryptocurrencies would probably make significant ripples throughout the space.
The Indian government has not taken an inflexible stance on regulating digital currency since upsetting a sweeping restriction from the RBI in March. Since then, multiple reports have circulated that cite sources within the government suggested the nation's parliament is backing decrease from developing a new law banning crypto trading in India and even looking at alternative solutions to regulate digital assets.
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