Given the growth in the number of participants in Bitcoin and other cryptocurrencies, trading volumes, and rupees traded, it is time that the Government makes its stand known. Even if a detailed policy framework is not possible at this stage, an indication of the Government’s mind will help in the robust growth of one of the fastest growing sectors of Fintech.
The exponential growth in cryptocurrency prices have led to several individual players making profits. While tax advisors are providing clients with their view on whether this constitutes a business income (or loss) or a capital gain (or loss), a word of clarification will help tax-payers and could also increase tax collections.
Mining of Bitcoin and other cryptocurrencies presents a unique “Make in India” opportunity that can boost self-employment. In addition, Government support in this area will encourage import-substitution of mining hardware.
Despite its vast population and technical capabilities, India accounts for less than 1% of global cryptocurrency activity. Forward-looking policy framework will help India strive to assume a leadership position in cryptocurrencies.
@Technuter.com News Service