The government is planning to define cryptocurrencies in the new draft bill that also proposes to compartmentalise virtual currencies on the basis of their use cases, according to some sources.
Cryptocurrencies will be treated as an asset/commodity for all purposes, including taxation and as per user case — payments, investment, or utility.
People in the know said only the cryptocurrencies that are covered under the government’s definition will be allowed to be traded in India.
These crypto assets will then be taxed accordingly, said people aware of the development.
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