Indian Government is likely to categorize crypto exchanges as e-commerce platforms in its new crypto bill, to bring some regulatory clarity to the country, according to a report.
If it gets approval from the cabinet, then all the Indian crypto exchanges would be segregated under the goods and services tax (GST) regime and will be stimulated to levy one percent tax collected at the source. However, the collected tax could be set off later according to the investors’ tax liability.
Further, the report specifies that the government might also segregate the crypto exchanges into three other categories: one that acts as a facilitator, then the brokerage that allows buying and selling and the last trading platforms that provide an interface for trading.
The Indian Government is also planning to use blockchain technologies to overturn the tax on crypto startups.
The adoption of cryptocurrency is increasing day by day in India, which resulted in the spawning of several crypto exchanges. Still, the regulatory scenario remains unclear in the country.
Recently, the Indian Government conducted a high-level meeting with the top stakeholders of the crypto industry.
Initially, the government was planning to ban crypto trading in the country, but recently, it has changed its stance and is likely to take the middle path on cryptocurrency.