JAKARTA – The Indian government is reportedly considering crypto as a digital asset. Regulations regarding crypto will be launched in February. The government is currently working on regulations regarding crypto-based digital currencies. Whereas previously India was tough on cryptocurrencies.
Launching India Business Today, officials at the country's Ministry of Finance stated that legally crypto is closer to a commodity than a currency. If the law is successfully enacted, it will be a different approach from the previous Indian government which banned digital assets.
The officials mentioned that crypto legislation in India is likely to emerge when the government submits the Budget of the Union of India on February 1, 2022. In that regard, the Indian government is also working with the Reserve Bank of India (RBI) to work out the details of the crypto legal framework.
By recognizing crypto as an "asset" it is likely that the Indian government will impose a tax levy on retail investors and exchanges in the country. India's Department of Taxation is reportedly considering taxing crypto income through trading and exchanges.
The nation of 1.4 billion people decided to create a concrete legal framework for crypto but the government has not taken a firm position on regulating digital currencies since they lifted the ban on crypto in March.
Since the lifting of the crypto ban at that time, the lawmaker who issued the ban has reportedly resigned. The Indian government is also looking for alternative solutions to regulate crypto assets.
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