Government to Issue New Cryptocurrency Bill
- BySheetal Sidhu | September 4, 2021
Cryptocurrencies are potentially looking at a new change in India as the government is planning on ‘defining’ it as per a report by Economic Times. It was suggested that the government of India was proposing a new bill to segment cryptocurrencies on use cases, as informed by sources. This would be a first for cryptocurrencies as they have never been categorized by the technology used. However, the government’s focus, for the time being, is on the end-use of the asset for regulatory purposes the report mentioned.
This new bill is expected to outline the tax treatment of these digital assets and will define how they are classified in the book. It remained ambiguous as to whether the cryptocurrencies were considered currencies, commodities services or more equitable, said the report. It eventually comes down to a matter of law, as the main concern with the ambiguity is in regards to how the asset is taxed or regulated. Till now, that has not been the case with cryptocurrency in India.
The first goal of the government in this matter is then to define the cryptocurrency as per the source. It was also suggested that India should recognize crypto tokens as digital assets as opposed to a currency, while simultaneously clarifying the policies on exchange ownership parameters, KYC, accounting and reporting standards and so on, said the report.
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