A recent article by The Economic Times speculates that the unclear legal status of cryptocurrencies in India will soon come to an end for good.
Defining Cryptocurrency
According to the article, the Indian government intends to define cryptocurrencies in a new draught bill to compartmentalise digital currencies based on their intended use.
Notably, cryptocurrencies will be a recognisable asset/commodity for all official reasons, including taxation. Additionally, their utility will include payments, investments, and utility in the case of individual users.
According to the article, the new draught measure anticipates introducing in parliament during the current winter session.
The New Crypto Bill
Crypto assets are sometimes referred to as the most critical asset class of the twenty-first century. More than 15 million Indians have acquired digital assets worth more than $2 billion to date.
The new measure is the first time popular digital currencies like bitcoin and ether are classified according to their use-cases.
The government’s move to classify cryptocurrencies based on their use case is likely to boost crypto adoption in the country.
In particular, India’s Finance Minister, Nirmala Sitharaman, stated last week that she is seeking Cabinet approval on a cryptocurrency bill.
