According to reports, the Indian government is considering the regulation of cryptocurrency as a commodity

The Indian government may be considering establishing an encryption legal framework based on digital currencies as “assets” as early as February.

According to a report by the Indian news media Business Today on October 26, officials from the Ministry of Finance of the country Said The underlying legal framework will bring cryptocurrencies closer to commodities than currencies.If this legislation achieves results, it will represent a different Completely ban digital assets According to reports, in some countries that Indian lawmakers have been considering.

The officials added that any potential laws regarding cryptocurrencies in the country may be introduced when the government submits the budget of the Union of India on February 1 so that it will take effect in the next fiscal year. They added that they are working with the Reserve Bank of India (RBI) to work out the details of any crypto legal framework.

Marking cryptocurrencies as “assets” under Indian law may have tax implications for retail investors and exchanges in the country.According to reports, the Indian tax authorities Consider taxing crypto income Through trade and communication, but at the time of publication, no one in the government seems to have made any decisions.

related: According to reports, the Indian government is reviewing the proposed encryption ban legislation

India, with a population of approximately 1.4 billion, chooses to establish a specific legal framework for cryptocurrency, which may have a significant impact on the entire field. Since the overthrow of the comprehensive ban on the Reserve Bank of India in March, the government has largely failed to take a firm stance on regulating digital currencies.Since then, many reports have cited sources within the government, all indicating that the country’s parliament is Give up making new laws Prohibit crypto transactions in India and look for alternative solutions to regulate digital assets.