Even globally, governments have brought a regulatory framework for all crypto instruments – with a consideration for taxation being the next logical step.
“The possibility of tax income also helps the regulator self-regulate to some degree. Controlling the industry so tightly that crypto operations are not financially viable in India would ultimately make the regulator lose out on tax income. Taxation is always a sensitive subject, but the pattern is known and there is no surprise in crypto eventually falling under taxation regimes like many other financial instruments before it,” said Konstantin Anissimov, Executive Director at CEX.IO.
Indeed, with Bitcoin and Ethereum soaring to all-time record highs and other cryptocurrencies consolidating, the fact remains that the digitisation, decentralisation and automation of currency are becoming mainstream.