TL;DR Breakdown
- India wants to create a crypto regulatory framework.
- This new framework will eliminate the previous outright ban proposed.
- Top players in the country want the new crypto regulatory framework to go live by the next fiscal year/
The crypto sector is very diverse, with users in the space trading nothing less than 1,000 tokens every day. Even though the market promises massive profits, there are still some elements that regulators need to work on. One such element is illicit activities by malicious actors. To curb these and other flaws in the market, countries worldwide have taken to regulating their crypto space. India is no different, as the government has announced that it will unveil its crypto regulatory framework that will be used across the country.
India wants crypto regulatory framework live by Feb 2022
According to the report, India is looking to establish this crypto regulatory framework by February 2022. The report released by Business Today, a news outlet in the country, pointed out that the Ministry of Finance in the country will look at crypto as commodities instead of currencies. If this crypto regulatory framework comes to fruition, it will eliminate the possibility of banning digital assets in the country.
Notably, some big wigs in the country’s government have been championing the cause of banning digital assets across India. The officials also noted that if a new law is to be passed regarding digital assets, it would be sent in for consideration when they submit the Union budget of the country.
The union budget is scheduled to be submitted by Feb 1, which means that the crypto regulatory framework could go live when India starts its next fiscal year. It also added that it is currently in agreement with the Reserve Bank of India, and they are working out the modalities of the crypto legal framework.
New crypto regulatory framework could involve crypto tax
If the new crypto legal framework sees crypto as an asset, traders and exchanges win the country would be liable to pay tax on their returns. A previous memo noted that the Tax Department in the country was considering it but has not concluded at this present moment.
With India boasting a huge population spanning about 1.4 billion, this new crypto regulatory framework will spell good things for the country. The country’s government has still now made its stance regarding digital assets since it overruled a ban on digital assets by the Reserve Bank of India. Since then, there have been rumors that the top echelons in the country’s government are looking towards a crypto regulatory framework instead of outright banning it.
