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Regulation of cryptocurrency as digital assets will help Indian authorities to collect more tax

14 July 2017 12:02, UTC
According to CoinDesk.com, Indian government authorities continue to develop a legal framework for cryptocurrency regulation.

Thus, to study risks and work out different legislative initiatives in this field, a task force has been formed in April. According to local news publisher Hindu, Its participants are not in accord with regard to cryptocurrencies; at the last session the topic of their banning was brought up but it received little support.

According to a government official, cryptocurrency ban is going to impede collection of profit tax received as a result of cryptocurrency operations. Also it would prevent development of the advanced blockchain technology. In its turn, cryptocurrency regulation will help development of a supervision system tracking legal and illegal activities and a formal tax base.

Based on results of the most recent meetings of the task force, the decision was made to view cryptocurrencies as digital assets and regulate them in accordance with the Indian law. Cryptocurrency trading will fall within the jurisdiction of the Securities and Exchange Board of India (SEBI), which regulates the country’s securities market.