Hello there friends, I am sure it’s of no surprise to you all how much of a tug of war is going on between the Indian crypto community and the Indian government for the recognition and regulation of crypto.
In short, the Indian crypto community wants the Indian government to officially recognize the whole crypto-verse. Whereas, the Indian government advised by the RBI is against it. This ongoing turf is the cause of many FUDs going around the market.
But recently, something changed, an official meeting was arranged for the first time in history between government officials and leading crypto players of India on November 15.
These crypto experts comprised of representatives from the Indian crypto realm which also included representatives from the leading Indian crypto exchanges such as WazirX, CoinDCX, CoinSwitch Kuber, Bitbns, and others. Meaning, the Indian crypto community officially for the first time had the opportunity to present their views about crypto in front of a government panel.
Later, the government released a statement announcing that it isn’t possible to ignore the evergrowing crypto-verse or the blockchain technology behind it anymore, and hence, it would be wrong to ban it.
So, it will be better to regulate it instead as an asset class rather than making it a legal tender or for any kind of payment purpose.
This announcement alone had sent a clear-cut message through the whole Indian crypto community that the meeting seemed to be a success for the Indian crypto community.
Even our Honourable PM Narendra Modi later stated the same via Tweet that it must be managed in such a way that it doesn’t spoil the youth or fall into the wrong hands hinting that crypto will be adopted and regulated. Hence, giving a clear message that it will not be banned.
What is the Breaking News on Crypto?
News from various sources suggests that the Indian government is working fast on the crypto bill with the intended target of bringing it up in the upcoming Union Cabinet meeting and later if approved, the bill will be presented in the Winter Parliament session which is all set to start from November 29.
As per the sources, the new bill is said to comprise of the rules needed to categorize and classify various crypto assets into different classes making it easier to tax them categorically. Hence, if the bill gets passed then crypto will officially get recognized as an asset class and will also have its own set of tax rules which it currently lacks.
As per a top government official, the upcoming bill proposes that crypto gains will be taxed at par with the present taxation rules of Captial gains. The Revenue Secretary, Tarun Bajaj further stated the lines mentioned below:
We will take a call. I understand that people are already paying taxes on it. Now that it has really grown a lot, we will see whether we can actually bring in some changes in the law or not. But that would be a Budget activity. We are already nearing the Budget; we have to look into it at that point in time.
Well, once they officially recognize the value of the cryptocurrency and the blockchain mechanism behind it.
They can easily benefit from it by implementing it in various ways to run their own administration far better and easier. To know how the government could implement blockchain technology to reform their aging tax system, please click on the link.
That will be all for now folks. Make sure to subscribe to our newsletter to receive weekly updates on all kinds of interesting topics.