Notwithstanding detailed inspection and a capital of more than $6.6 billion in India's crypto economy in May 2021, it has evolved to become the more essential element.
Even with careful evaluation and investment of over $6.6 billion in May 2021 in India’s crypto economy it has developed to become the more important attribute. Recently after this The Economic Times stated that India’s cryptocurrency bill is trying to define and classify cryptocurrency assets in India. The report states that the government at the present is focusing on the end-use of the assets for regulatory purposes also the report mentioned a inter-ministrerial panel on cryptocurrency where few of the principle suggestions mentioned are:
The main goal of the bill is to highlight the crypto based on the technology used in it. It is imperative to emphasise the tax treatment of these digital assets and will also define how they are categorized. The policies on exchange ownership parameters KYC accounting and reporting standards and so on should be stated clearly for everyone to understand. The crypto assets which were explained and categorized by the government would only be allowed to trade in India. The crypto coins would then be taxed accordingly.
It was stated that one should try to apply a similar tax to the security transaction Tax (STT) in the future. It has been mentioned before that these digital assets could be taxed as business income when handed over to the investors at normal rates of income tax. This would probably be the first time that crypto defined and segmented on the basis of technology used. Nevertheless, the working of the regulatory outline of crypto would become clearer to understand once the bill is approved.
There are many personalities from the crypto world who have expressed how they feel about the new bill and how they have expectations. ZebPay CEO Avinash Shekhar were positive about the benefits of the regulatory framework for investors and entrepreneurs who said they would be able to participate in this industry.