• Send Us A Tip
  • Calling all Tech Writers
  • Advertise
Sunday, May 18, 2025
  • Login
  • Register
TechStory
  • News
  • Crypto
  • Gadgets
  • Memes
  • Gaming
  • Cars
  • AI
  • Startups
  • Markets
  • How to
No Result
View All Result
  • News
  • Crypto
  • Gadgets
  • Memes
  • Gaming
  • Cars
  • AI
  • Startups
  • Markets
  • How to
No Result
View All Result
TechStory
No Result
View All Result
Home Crypto

Govt. plans to introduce a bill to treat crypto as commodities

by Baisakhi Mishra
September 4, 2021
in Crypto
Reading Time: 2 mins read
0
Govt. plans to introduce a bill to treat crypto as commodities

Image Source: The Economics Times

TwitterWhatsappLinkedin

According to three persons familiar with the matter, the government plans to define cryptocurrencies in a new draught statute that also suggests compartmentalizing virtual currencies based on their use cases. Crypto will be treated as an asset/commodity for all purposes, including taxation, as well as payments, investment, and utility, according to the user’s needs.

You might also like

FTX Launches $5.4 Billion Plan to Pay Creditor Fees

Alabama Man Sentenced for SEC X Account Hack That Faked Bitcoin ETF Approval

Robinhood’s Big Move into Canada: A $179M Deal for WonderFi

This will be the first time cryptocurrencies are classified based on the technology they employ, but sources say the government’s focus will be on the asset’s end-use for regulatory purposes. The measure is also anticipated to spell out the tax treatment for such assets, ensuring that they are properly recorded in the books.

Image Source: The Economics Times

“The government is working on defining cryptocurrency and its treatment in various use cases in its draught bill so that it can be treated correctly in the books of accounts and taxed properly,” a source close to the situation said. “It has no intention of allowing virtual currency payments and settlements.”

There is no clear definition of whether crypto assets are a currency, a commodity, a service, or anything closer to equity, whether for tax or other reasons. This is a gap in the law because without a definition of an asset, the question of how it should be taxed or governed arises. According to sources close to the situation, the administration wants to define cryptocurrencies first.

“Crypto-assets can be classified according to the technology they employ or according to their intended use. So, before talking about how the legislation should function, the government needs to define what cryptocurrencies are, according to a source familiar with the situation. Crypto exchanges recently submitted policy recommendations for regulating cryptocurrencies, including classifying cryptocurrencies as digital assets and establishing a framework for registering indigenous exchanges, according to ET.

They urged that India recognize crypto tokens as digital assets rather than currency and that policies on exchange ownership, KYC, accounting, and reporting standards, among other things, be clarified.  It is estimated that there are more than 5,000 cryptocurrencies, all regulated differently. In the view of Jaideep Reddy, head of technology law at Nishith Desai Associates, cryptocurrency regulation should be based on the end-use or activity of a specific token, rather than just the technology itself.

According to sources close to the situation, only cryptocurrencies that fall under the government’s definition would be allowed to trade in India. According to those familiar with the situation, these crypto assets will then be taxed appropriately. According to sources, the government could impose a security transaction tax (STT) on cryptocurrency trading as well.

Please share this information with your friends and family if you found it useful!

Also read: Nigeria’s SEC set up fintech unit to study crypto investments

Tags: #Crypto exchanges#crypto-assetscryptocurrency
Tweet54SendShare15
Previous Post

Google, Siri listen in to private conversations, say lawsuits

Next Post

Lyft, Uber to cover legal fees of drivers sued under Texas law

Baisakhi Mishra

Recommended For You

FTX Launches $5.4 Billion Plan to Pay Creditor Fees

by Anindya Paul
May 18, 2025
0
FTX

FTX, the now-defunct cryptocurrency exchange that went bust in November 2022, will be making a second round of distributions amounting to $5.4 billion to its creditors on May...

Read more

Alabama Man Sentenced for SEC X Account Hack That Faked Bitcoin ETF Approval

by Anindya Paul
May 18, 2025
0
Alabama Man Sentenced for SEC X Account Hack That Faked Bitcoin ETF Approval

In a landmark case underscoring the vulnerabilities of high-profile social media accounts, 26-year-old Eric Council Jr. of Alabama was sentenced to 14 months in prison for his role...

Read more

Robinhood’s Big Move into Canada: A $179M Deal for WonderFi

by Anindya Paul
May 16, 2025
0
Robinhood’s Big Move into Canada: A $179M Deal for WonderFi

Robinhood Markets has made its move into Canada with the acquisition of Canadian crypto company WonderFi Technologies for C$250 million (US$179 million) in a cash deal, representing a...

Read more
Next Post
The Uber Story

Lyft, Uber to cover legal fees of drivers sued under Texas law

Please login to join discussion

Techstory

Tech and Business News from around the world. Follow along for latest in the world of Tech, AI, Crypto, EVs, Business Personalities and more.
reach us at [email protected]

Advertise With Us

Reach out at - [email protected]

BROWSE BY TAG

#Crypto #howto 2024 acquisition AI amazon Apple bitcoin Business China cryptocurrency e-commerce electric vehicles Elon Musk Ethereum facebook flipkart funding Gaming Google India Instagram Investment ios iPhone IPO Market Markets Meta Microsoft News NFT samsung Social Media SpaceX startup startups tech technology Tesla TikTok trend trending twitter US

© 2024 Techstory.in

No Result
View All Result
  • News
  • Crypto
  • Gadgets
  • Memes
  • Gaming
  • Cars
  • AI
  • Startups
  • Markets
  • How to

© 2024 Techstory.in

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?