Authorities in India are set to introduce taxation on bitcoin exchanges and on transactions involving digital assets, rather than a ban on cryptocurrencies. The Economic Times reports.
According to sources, this move does not amount to recognizing cryptocurrencies as a bona fide asset class. The authorities consider it reasonable to tax profit-seeking activity, the publication added.
By the end of 2021, the Reserve Bank of India (RBI) plans to pilot its own digital currency, according to journalists.
Meanwhile, Indian cryptocurrency exchanges have launched advertising campaigns and airdrops for the festival season that began on 10 September, ET reports. Such campaigns are aimed at attracting new retail investors.
On Sept. 7, former deputy RBI governor Rama Subramaniam Gandhi stated that digital assets in India should be taxed depending on how they were acquired.
In June, the media learned of plans to impose a 2% tax on cryptocurrency bought on foreign exchanges. In June, journalists reported the possibility of imposing additional 18% tax for foreign trading platforms.
In January, India’s parliament introduced a bill proposing a ban on cryptocurrencies. However, the document was never presented. In June, Bloomberg reported that the government planned to consider the regulation of the digital asset class.
According to Chainalysisestimated the number of crypto investors in India stood at 15 million, and the value of assets owned by them was $38.8 billion.
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