Government may give recognition to cryptocurrencies by classifying it as commodity. In the proposed new bill, the government said that it may recognise crypto as digital assets.
The government may also propose the introduction of regulations for crypto exchange platforms, KYC, accounting and reporting norms. The draft bill is scheduled to be introduced during the winter session of Parliament.
With this, cryptocurrencies like bitcoins will be treated like gold and silver for taxation purposes. Experts believe that the move will increase acceptance of cryptocurrency among investors.
Cryptocurrencies are unregulated but not illegal in India. RBI had barred banks from facilitating crypto transactions in 2018 but that order was quashed by the Supreme Court in 2020.
