New Delhi: The Government of India is planning to define cryptocurrency as an asset/commodity for all purposes, including taxation and as per use cases like payments, investment or utility. The Economic Times reported on Thursday that the new draft bill that the government has given a shape to proposes to compartmentalize virtual currencies on the basis of their use cases.
The bill is expected to specify tax treatment for the new age asset class, which will be clearly classified in the books of law. This would be the first time that the cryptocurrencies will be categorized as per the technology used by them, but the government’s focus would be based on the end use of the asset class for regulatory purposes.
The move can be a morale booster for crypto investors, which will increase the education, awareness, investment and acceptance of cryptocurrencies, industry watchers said. Industry experts and exchanges are positive on the development and are welcoming the government's intentions. However, they are awaiting the bill for more clarity on the concerns they have.
https://economictimes.indiatimes.com/markets/cryptocurrency/crypto-as-commodity-what-does-it-mean-for-you-and-the-industry/articleshow/85892934.cms
