The Indian government is reconsidering its stance on cryptocurrencies and may soon allow them to be used as an asset class in the country. This means that people in India may be able to buy and sell cryptocurrencies in the form of stocks, gold, or bonds. To ensure a safe trading environment for such crypto investors, the government is also expected to issue guidelines for crypto exchanges in the country, as well as a new taxation system.
The move was hinted at in a recent Economic Times report. It states that while the government may permit the use of cryptocurrencies as assets, their use as currency may be prohibited. This means that people in India will be unable to use cryptocurrencies such as Bitcoin or Ethereum for transactions. According to the sources cited in the report, discussions on such regulation are still ongoing, and there is a possibility that the government will levy a tax on such cryptocurrency trading in India.