The Indian government is considering regulating cryptocurrencies as commodities, which would impose strict regulations on trading. The proposal has already been submitted to the country’s Ministry of Finance and Economic Affairs.
The “cryptocurrency bill india” is a report that the Indian government is considering regulating cryptocurrency as a commodity. The move would be in response to the growing popularity of cryptocurrencies such as Bitcoin and Ethereum.
As early as February, the Indian government may consider developing a legal framework for crypto based on digital currencies as a “asset.”
Officials from India’s Finance Ministry, according to an Oct. 26 story from Business Today, stated the prospective legal framework would treat cryptocurrencies more like commodities than currency. If passed, this measure would be a departure from the outright ban on digital assets that some Indian MPs are apparently proposing.
Any prospective cryptocurrency legislation in India would most likely be introduced around the time the government releases the Union Budget of India on Feb. 1, in time to take effect by the following fiscal year, according to the officials. They also said that they were in discussions with the Reserve Bank of India, or RBI, to iron out the intricacies of any potential crypto legal framework.
The classification of cryptocurrency as a “asset” under Indian law would very certainly have tax ramifications for Indian retail investors and exchanges. The Indian Tax Department was apparently considering taxing crypto profits earned via trades and exchanges, although no decision had been taken at the time of publishing.
India’s government is allegedly reviewing proposed crypto prohibition laws.
With a population of 1.4 billion people, India’s decision to create a solid legal framework for cryptocurrencies is expected to cause enormous waves in the industry. Since rejecting the RBI’s broad prohibition in March, the government has mainly been silent on how to regulate digital currency. Since then, various stories have surfaced quoting official sources that both imply that India’s parliament is backing down from enacting a new legislation prohibiting crypto trading and that the country’s parliament is considering alternate ways to control digital assets.
The “crypto regulation bill” is a report that the Indian government is considering regulating crypto as a commodity. This would be in addition to other regulations, such as the Know Your Customer (KYC) and Anti-Money Laundering (AML) rules.
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