Indian Government Plans To Tax Cryptocurrency Exchanges Soon

If there is one aspect that has become synonymous with the crypto industry, it has to be that of regulations. Governmental and regulatory authorities all over the world have consistently tried to curb the skyrocketing popularity of cryptocurrencies for a long time now, and India is no exception. As such, India’s government is currently considering the possibility of taxing both cryptocurrency exchanges and trades in the nation. 

As per the most recent information, the country’s authorities are set to consider the aforementioned possibility via a cryptocurrency-related bill in the near future, which involves the government taxing all activities and operations which generate revenue, and this includes crypto trades and exchanges. However, the introduction of this taxation has not yet been confirmed by the nation’s government itself as of yet.

Crypto bill has yet to be taken up

Various government sources indicated that cryptocurrency trades, exchanges, and the overall ecosystem in India could be subject to taxation sooner rather than later. This is because of the abovementioned reason, which is that the country’s government feels as if all activities which are generating any kind of revenue must pay taxes. India’s Cabinet, however, has yet to actually take up the new bill as of this point in time. 

Still, this is indeed an interesting development as it could drastically alter the cryptocurrency sector in the nation, as even now, India’s tax department is hard at work coming up with new and innovative ways regarding the implementation of the new tax. This tax targets not only the country’s cryptocurrency exchanges but also any individual who may have taken part in crypto trading and made subsequent profits. 

Caution being exercised by Indian lawmakers

It should be mentioned that the new tax does not necessarily guarantee that cryptocurrencies will immediately become accepted as any kind of legitimate asset class in the country. Despite India’s popularity largely supporting crypto, the government remains hesitant and wary.

Jayant Sinha, the country’s Parliamentary Standing Committee on Finance, talked about the legal guidelines regarding cryptocurrencies and thus announced that the nation’s crypto-oriented laws must be ‘unique. Jayant added that it is simply not feasible for India to adopt any of the crypto-related regulations which are being utilized by other, more advanced nations because the country’s capital account is, in fact, not fully convertible. As such, any regulatory guidelines pertaining to cryptocurrencies in India will have to be distinct and unlike the ones being used by the likes of the United States or El Salvador.