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India is up to Classifying Crypto-Exchanges as e-Commerce Platforms

Dec 03, 2021

The exchanges will probably comply to the Indian Goods & Services Tax (GST) regime.

Country’s government is about to implement regulatory clarity on the Indian booming crypto-industry. According to local media “Business Standard” report released last Wednesday the plan is to label crypto-exchanges as e-commerce platforms.

This governmental initiative will result in Indian crypto-exchanges to fall under the GST regime that will prompt them to levy a one percent tax collected at the source. However, the collected taxes might be set off later according to the investor’s tax liability.

In case the new regulations will be finally accepted, all the crypto-exchanges operating in India will be obliged to register themselves according to the GST regime.

Moreover, the rumors state that authorities might classify crypto-exchanges into three categories: Those acting as facilitators, brokerages that allow buying and selling, and trading platforms, providing users with trading interface. Another initiative discussed is to classify the use of blockchain technologies as an export, thus may bring down the tax on crypto startups. There has been daily growing urgent need of crypto-industry regulations in India.

The country has a wide spread of crypto-related services & activities among its citizens, which has thinkably resulted in the spawning of several crypto exchanges, while regulatory scenario is still remaining dark. During the last few weeks, the Indian government has held a number of high-level meetings focused on cryptocurrency and its regulation. In spite of previous plans to ban cryptocurrency circulation in the country, the recent attitude of the government became indulgent.

The widespread of crypto-services over the country has encouraged local exchanges to run rampant advertisement campaigns all over the media. Notwithstanding, the vista of new regulations, which may add restrictions on crypto promotions, a number of top exchanges have decided to abstain from running such ads.

From our perspective, implementation of crypto-regulations is inevitable and shall be met with gladness, as regulations are not only setting the rules to the market and protect its customers, but also result in development of the regulated object. Withal, our editorial office is always delighted to hear about development of crypto-activities over the globe, as we greet progress with joy.

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