Crypto trading in India may be taxed by 1 per cent and regulated by SEBI, new reports hint

Following the meeting of cryptocurrency stakeholders in India with a Lok Sabha panel on Monday, speculations around the government's take on cryptocurrencies are amuck. A new report now suggests that the government may allow the use of crypto as assets in the country, though this use might be taxed for the first time ever.

Changing its stance on cryptocurrencies, the government of India may soon allow their use as an asset class in the country. This means people in India may be able to buy or sell cryptocurrencies as shares, gold or bonds. To ensure a safe trading space for such crypto investors, the government is also likely to roll out guidelines for crypto exchanges in the country, including a new taxation system.

The decision, as and when it comes, will be the first official regulation on cryptocurrencies in India. The move has been hinted at in a recent report by the Economic Times. It mentions that even though the government may allow the use of cryptocurrencies as assets, their use as a currency might not be permitted. This means people will not be able to use cryptocurrencies like Bitcoin or Ethereum for transactions in India.