Indian Government May Allow Cryptocurrencies With Riders

Economic Times, on Tuesday, quoted Cogencis in a tweet, which revealed that an Indian government panel does not favor a ban on cryptocurrencies. Instead, the government will allow trading with a few riders but the details of which remain hidden.

On the other hand, the central bank has, in principle, admitted that its surprise move to ban banking for crypto businesses was ill-advised. This has brought a wave of joy to Indian crypto traders and businesses that were hampered in April due to strangulating policies.

No details about the “riders” were furnished with the tweet. Last month, Bloomberg Quint reported that the government might classify cryptocurrencies at par with software products and add an 18% Goods and Services Tax (GST) on these transactions. The Central Board of Indirect Taxes and Customs is finalizing this policy draft, which will be tabled to the GST Council on completion.

It quoted government sources close to the matter who revealed that the Department of Economic Affairs wants to tax and regulate the virtual coins. Investigative agencies, on the other hand, are demanding a complete ban owing to the anonymous nature of these currencies and their use in illegal activities.