In regards to the Twitter post from news site ET Now, the government of India is looking to allow crypto trading but apply taxes and regulatory laws.
According to the sources of ET Now, the Indian government is going to be working on the application of taxes on cryptocurrency exchanges and the overall system running in the country, but the Indian government hasn’t officially announced anything yet, so it is something that is still unclear.
Words from Ruchi Bhatiat
Ruchi Bhatiat from ET Now posted a series of tweets saying that the cabinet of the Indian government will soon be looking into the bill about the operations of cryptocurrencies in the country. The taxation department apparently wants to apply taxes on any sort of action that involves the generation of revenue, which will also include crypto trading and exchange operations.
Ruchi Bhatiat also said that it is something that “is very interesting” in the development of the financial sector, as the taxation department is looking to find various means to apply taxes on both cryptocurrency exchanges and also separate individuals who are earning profits from trading cryptocurrencies. The government thinks that all actions involving income generation have to be taxed.
Furthermore, Ruchi Bhatiat stated that the application of taxes and rules does not mean that the country is doing to accept Bitcoin and other cryptocurrencies as a standard asset. The Indian government’s take on cryptocurrencies is still very strict, so it is clear that anyone who is earning from cryptocurrencies will have to pay taxes according to their income.
Jayant Sinha, Chairman of the Indian Parliament Committee on Finance, talked about the cryptocurrency laws, saying that laws regarding cryptocurrency would have to be different than others. Jayant Sinha said that because the Indian currency isn’t ready for proper conversions, it is not advisable to apply any sort of regulations applied by other major countries. The crypto laws will be different from the US, Japan, and others.
However, things aren’t looking to get any better soon because the governor of the Reserve Bank of India, Shaktikanta Das, had doubts about cryptocurrency during an event, as he stated that the Central Bank of India is quite seriously concerned about the utilization of cryptocurrencies in India.