The Indian government may be considering creating a legal framework for cryptocurrency-based digital currencies as an “asset” from February.
According to a report by Indian news agency Business Today on Tuesday, Officials from the country’s Treasury Department said the potential regulatory framework would treat cryptocurrencies like goods rather than currenciesWhen this law goes into effect, it would represent a different approach to a total ban on digital assets in the country that some Indian lawmakers have reportedly been considering.
Officials added that all cryptocurrency laws in the country would likely come when the government tabled India’s Union budget on Feb.1, in time for it to go into effect before the next fiscal year. They added that they were working with the Reserve Bank of India (RBI) to work out the details of a legal framework related to crypto.
Marking cryptocurrencies as an “asset” under Indian law would likely have tax implications for retail investors and exchanges in the country. India’s Department of Taxation was considering taxing cryptocurrency revenues through trading and exchanges, but it appears that no one in the government has made a decision at press time.
With a population of around 1.4 billion India’s decision to create a specific legal framework for cryptocurrencies would likely have a significant impact on space as a wholeThe government has largely failed to take a firm stance on the regulation of digital currencies since a blanket RBI ban was lifted in March. Several reports have made the rounds citing sources within the government suggesting that the country’s parliament is refraining from creating a new law banning cryptocurrency trading in India and is also looking for alternative solutions to regulate digital assets.