Indian government plans to introduce a bill to treat cryptocurrencies as commodities

On September 3, three people familiar with the matter said that the Indian government plans to define cryptocurrency in a new draft bill, which also proposes to divide virtual currencies according to their use cases.

Cryptocurrencies will be treated as assets/commodities for all purposes, including taxation and depending on the user - payment, investment or utility. Sources said this will be the first time that cryptocurrencies will be categorized based on the technology they use, but the government's focus will be on regulating based on the end-use of the asset. The bill is also expected to outline the tax treatment of such assets so that they are clearly categorized in the books.