The Indian government is looking at establishing a legal framework for crypto-based digital currencies as assets.
The Finance Ministry said the potential legal framework would treat cryptocurrencies closer to commodities than currencies. If this legislation is passed, it would represent a different approach than an outright ban on digital assets in the country, which some Indian lawmakers are considering.
The Ministry officials stated that the law on cryptocurrencies would likely come around the time the government submits the Union Budget of India with time to take effect before the next fiscal year.
Classifying crypto as an asset under Indian law would have tax implications for retail investors and exchanges in the country. The Tax Department of India was looking at taxing crypto earnings through trades and exchanges, but no decision has apparently been reached from anyone in government at the time of its announcement.
