Indian government is planning to define new crypto draft bill

Reports confirmed that Indian government authorities are working on to create a new draft bill that can define crypto in perfect manners.

The stance of the Indian government on crypto is not clear since the last few years but in 2021 Wazrix exchange confirmed that the government of India is working to categorize Crypto in the asset class category with other mandatory things which are needed for perfect regulation.

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According to the report of Economic Times of India, the new bill of crypto in India, will describe crypto assets as commodities and it can be used in taxation, payments, investments or utility purposes.

Here it should not be considered that the new draft bill gives legalisation for the crypto to use in the payment purpose directly. 

Government authorities are working to provide clarity on the crypto assets, so that tax rules can be imposed perfectly on the crypto. 

So the first thing that government authorities need for the crypto is to put it in a particular category and that will help them to impose taxation and regulation.

The CEO of WazirX, Nischal Shetty, talked on this matter in the written form to put his own point of view and suggested crypto in four categories, earlier 

“Categorizing crypto is critical to having the right crypto regulations in India. Crypto is primarily categorized into four major categories globally — asset, utility, currency and security.”

ET report claimed that they got information from an anonymous source that authorities are working to define the perfect outline for the crypto so that they can be perfectly defined in the account books and crypto can be easily restricted under tax rules. And they are also looking to restrict crypto use in the payment system.

“The government in its draft bill is working towards defining cryptocurrency and its treatment in various use cases, so that it can be treated correctly in the books of accounts, plus it should be taxed in the right manner. It is not looking to allow payments and settlements through virtual currencies.” 

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