Cryptocurrencies Won’t Be Banned In India, As Per ‘Sources’; But Regulation Can Happen
Since the last few days, speculations are rife that the Indian Govt may place a blanket ban on all ‘private’ cryptocurrencies, barring few, and this has sent shockwaves across the nation.
Due to this report, derived from a bulletin mentioned in the Lok Sabha website, the prices of major digital currencies have dropped by upto 25% in India (when bought against INR).
However, now fresh reports are emerging, that states there won’t be any ban per se, but yes, regulation is a huge possibility.
This is what happened in the last 24 hours..
‘Private’ Digital Currencies Won’t Be Banned In India
As per a report by News18, few reliable Govt sources have informed them that Govt of India won’t impose a blanket ban on cryptocurrencies in India.
However, a major regulation will be imposed on the exchanges that are enabling Indian investors to buy and sell these digital currencies.
A new bill is expected to be presented in the upcoming Winter session, wherein regulation of cryptocurrencies in India will be imposed.
How Will The Govt Regulate Crypto Trading?
As per speculations, Indian Govt will launch its own platform to buy and sell digital currencies, and this can be the only way through which Indians can buy and sell these digital currencies.
Another speculation is that the income generated from the selling of digital currencies will be treated as long term gain, and appropriate taxation will be imposed on the same.
Kristin Boggiano, Member of Blockchain and Crypto Assets Council (BACC) said, “We believe that the gains derived from cryptocurrencies held for more than 36 months will be classified as long-term capital gains. However, the gains you make over a shorter period of time will be classified as short-term gains. The tax rate on these gains will vary depending on various factors like how much more popular Crypto investment is getting in India, its effect on Government’s net value, impact on the exchange rates of rupees vs. other international ones amongst several other such.”
Govt of India has already established a panel of eminent leaders and experts to study the impact of cryptocurrency in India, and observe its pitfalls and dangers.
Things are still unclear.
We are awaiting more information from Govt sources regarding the new bill.
We will keep you updated, as more details come in.