cryptocurrency India is potentially witnessing a new shift as the government plans to ‘define’ it, according to a report in the Economic Times. it was suggested that Indian government Sources told ET that the use case was proposing a new bill to delist cryptocurrencies. This will be a first for cryptocurrencies as they have never been classified by the technology used. However, the focus of the government is currently on the end use of the asset for regulatory purposes, the report noted.
The new bill is expected to outline the tax treatment of these digital assets and define how they are classified in the book. The report states that it remains unclear whether cryptocurrencies are treated as currencies, commodity services, or more equitable. It ultimately comes down to the law, as the main concern with ambiguity is in relation to how property is taxed or regulated. So far, this has not happened with cryptocurrencies in India.
The government’s first goal in this case is to define the cryptocurrency sources disclosed to ET. The report said that it was also suggested that India should recognize crypto tokens as a digital asset as opposed to a currency, as well as clarify policies on exchange ownership parameters, KYC, accounting and reporting standards, etc. needed.
It was also pointed out that only cryptocurrency assets classified and defined by the government would be allowed to trade in India. After this the crypto coins will be taxed accordingly. It was suggested that the government may introduce a tax similar to the Security Transaction Tax (STT) in future. In the second line, these digital assets may also be subject to income tax if they are actually classified as commodities. Income in the hands of investors can be taxed as business income at ordinary rates of income tax.
In the past the Reserve Bank of India had flagged the issue of cryptocurrency as it was not regulated nor had any prior framework. Having said this, the move by the government can be seen as a morale boost for Indian cryptocurrency investors. It could also see an increase in the spread of knowledge of the previously mysterious digital asset and could lead to better investment opportunities.
While this has caught the attention of industry experts, investors and crypto exchanges alike, one will have to wait and see what the new bill for crypto is going to be in the country going forward.
The global crypto market has seen some major ups and downs in the past few months. Currently, the global market capitalization stood at $2.26 trillion, an increase of 1.15 percent during the day. The total crypto market volume stood at $131.49 billion in the last 24 hours, which indicates an increase of 2.52 percent.
Bitcoin which is the leading crypto coin was priced at $49,927.54 on Friday. It maintained market dominance of 41.51 per cent, though it saw a decline of 0.63 per cent during the day. Other popular coins on the market include Ethereum, Cardano, Binance Coin and Tether.
read all breaking news, breaking news And coronavirus news Here
.