According to reports, India is preparing to introduce the much-discussed cryptocurrency bill before or during the upcoming parliament session. The bill is expected to be introduced during the upcoming union cabinet meeting, with the winter session beginning on November 29.
The cryptocurrency above bill includes new regulations on crypto assets, their classification, and projected tax earnings. If the bill receives cabinet approval, it might be passed during the next parliament session. According to previous reports, the government may regulate cryptocurrencies as an asset class and prohibit their payment method.
According to a prominent government official, the new legislation will include taxes on crypto earnings based on current capital gains standards. Tarun Bajaj, the Revenue Secretary, discussed how crypto assets are taxed.
For nearly four years, the Indian crypto industry has thrived amid regulatory uncertainty. According to one report, India’s cryptocurrency ecosystem has grown to a $6 billion sector, with several new unicorns. The Indian crypto industry could reach new heights now that the government appears to be on track to clear crypto rules.
The Reserve Bank of India is still skeptical of cryptocurrencies
The Reserve Bank of India (RBI), India’s central bank, is still wary of the usage of digital assets, warning that it could disrupt the financial system. Shaktikanta Das, the Reserve Bank of India governor, has issued a warning about the potentially devastating impact of digital assets on macroeconomic and financial stability.
The RBI also implemented the infamous banking ban in 2017, which suffocated the crypto sector and produced numerous misconceptions among the general public. India’s Supreme Court later repealed the restriction on banking in 2019.