We often call crypto a cryptocurrency and it creates confusion while many people think that its digital currency. But the reality is a bit different where this is not a currency unless any country makes it legal tender and in another case its better to call it a crypto token that can be considered as an asset. Considering crypto as a currency will bring many challenges and its not easy for any country to accept crypto as currency in place of their own fiat currency. Every country has its own fiat and most of the countries are not comfortable getting their fiat replaced with crypto and that's why they are probably not in favor of crypto.
First of crypto is not a currency and we can call it crypto tokens or digital crypto assets which are easy to understand its no way connected with any currency. It has monetary value and we can get the same by trades but we can't use it in place of fiat however we have some use cases where crypto can be used for payment. But this use case cant define crypto as currency. I don't think that we should treat it as currency in any way.
India is planning to define crypto as a commodity or asset that anyone can buy sell or hold but it can't be used as currency anywhere and even it will not be legal tender. It has been clear from day one that India is not going to make it legal ender because it's not feasible for the country. Even though the country has got very good growth in terms of adoption but not even 1% of people are in the crypto space in India which means there is a long way to go. We can expect that if we continue to grow with the current pace then in the next few we should have about 1% population in crypto within India. Since India is a big country so even a small percentage will make a bigger difference.
The Government of India is planning to define cryptocurrency as an asset/commodity for all purposes, including taxation and as peruse cases like payments, investment, or utility.
Indian govt is planning to consider it as a commodity for various purposes like taxation etc and this will help the crypto community a lot. Crypto exchanges have already cleared their stand that they want crypto to get regularised as an asset and not currency since currency will bring many complications. Defining crypto as an asset/commodity will enable trading like people can do with sticks and there will be a legal framework for taxation as well. As of now if we earn through stocks then the broker first charges GST on the brokerage and then income tax is also applicable where as with crypto there is no GST and exchanges charge only their fee without GST however this will be changed once regulation is in place.
This will be one of the additions that will bring a good amount of revenue to the govt as trading volume is quite high and its even counting so I believe govt should not delay it anymore. Its expected that the last quarter could be the period in parliament when the crypto bill will be present and let's see then how much time takes to get approval and implementation.
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