India prepares to tax cryptocurrency gains
India aims to make some amendments to its income tax laws, to include cryptocurrency gains.
It is expected that this step will be announced in next year's budget, according to a report quoted by CNBC on the Indian agency.
"Now, that digital currencies have gained prominence, the government may be making tax changes," the Indian agency quoted the Secretary of Revenue Department, Tarun Bajaj, as saying.
The plan to amend tax laws comes as India considers additional measures related to digital currencies.
It is reported that Indian Prime Minister Narendra Modi had urged democratic countries, earlier this week, to cooperate in regulating private virtual currencies, to avoid them falling "in the wrong hands".
The Reserve Bank of India (RBI) opposes cryptocurrencies due to their threat to the country's financial stability.
Last February, the Reserve of India began making plans to launch its own central bank digital currency (CBDC).
Reports by the Economic Times indicated that India is preparing to ban the use of cryptocurrencies for payments and plans to regulate the trading of cryptocurrencies as assets.
India is seeking to stop using the likes of Bitcoin or Ethereum for payments, however, it can still be held as an asset like stocks, gold or bonds.
According to reports, the Government of India will ban ads from crypto companies that encourage people to invest.
And last August, the bitcoin exchange Unocoin was allowing its users to buy coupons from over 90 different brands with bitcoins, allowing people to buy anything, and currently, there are no regulations or bans on cryptocurrencies in the country.
Days ago, Indian Prime Minister Narendra Modi spoke publicly about cryptocurrency for the first time at a forum hosted by the Australian Strategic Policy Institute. “It is important that all democratic countries work together on this matter and ensure that it does not fall into the wrong hands, potentially spoiling our youth,” Modi said. .
