India Might Classify Crypto Exchanges as e-Commerce Platforms
- The exchanges will likely fall under the GST regime of the country.
The Indian government is expected to bring some regulatory clarity on the country’s booming cryptocurrency industry by labeling crypto exchanges as e-commerce platforms, local media Business Standard reported on Wednesday.
This expected step will bring the Indian crypto exchanges under the goods and services tax (GST) regime that will prompt them to levy a one percent tax collected at the source. However, the collected taxes can be set off later according to the investors’ tax liability.
If the rules come into effect, all the crypto exchanges operating in the country will need to register themselves under the Indian GST regime.
In addition, the report details that the government may classify crypto exchanges into three categories: the ones that act as facilitators, the brokerages that allow buying and selling, and trading platforms that provide an interface for trading.
Also, the government might see the use of Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term technologies as an export that might bring down the tax on crypto startups.
In Dire Need for Regulation
India has a high crypto penetration among its citizens that has resulted in the spawning of several crypto exchanges. However, the regulatory scenario remains very unclear.
Recently, the Indian government conducted a high-level meeting with cryptocurrency on its agenda. Though a previous draft bill was expected to ban cryptocurrency circulation in the country, the recent stance of the government switched to being extremely lenient.
Furthermore, the popularity of Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term in the country encouraged local exchanges to run rampant ad campaigns across all media streams. However, with the possibility of the coming regulations, that might add some restrictions on crypto promotions, several top exchanges have decided to abstain from running ads.
The Indian government is expected to bring some regulatory clarity on the country’s booming cryptocurrency industry by labeling crypto exchanges as e-commerce platforms, local media Business Standard reported on Wednesday.
This expected step will bring the Indian crypto exchanges under the goods and services tax (GST) regime that will prompt them to levy a one percent tax collected at the source. However, the collected taxes can be set off later according to the investors’ tax liability.
If the rules come into effect, all the crypto exchanges operating in the country will need to register themselves under the Indian GST regime.
In addition, the report details that the government may classify crypto exchanges into three categories: the ones that act as facilitators, the brokerages that allow buying and selling, and trading platforms that provide an interface for trading.
Also, the government might see the use of Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term technologies as an export that might bring down the tax on crypto startups.
In Dire Need for Regulation
India has a high crypto penetration among its citizens that has resulted in the spawning of several crypto exchanges. However, the regulatory scenario remains very unclear.
Recently, the Indian government conducted a high-level meeting with cryptocurrency on its agenda. Though a previous draft bill was expected to ban cryptocurrency circulation in the country, the recent stance of the government switched to being extremely lenient.
Furthermore, the popularity of Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term in the country encouraged local exchanges to run rampant ad campaigns across all media streams. However, with the possibility of the coming regulations, that might add some restrictions on crypto promotions, several top exchanges have decided to abstain from running ads.