India Mulls Bitcoin Regulation

FinTech, Investing, News, Regulation | July 14, 2017 By:

Reports indicate India may consider making bitcoin subject to a goods-and-services tax, a change from plans to incorporate it into existing financial regulations.

A task force has been grappling with ways to integrate bitcoin into India regulations. But a report by The Hindu news organization indicates that the focus has shifted from regulation to taxing bitcoin. India once considered a ban on the cryptocurrency, but gradually warmed to its utility.

Any plan to tax bitcoin would fly in the face of its decentralized system and would likely hamper its outlook in India. The country’s Securities and Exchange Board of India (SEBI) would be the likely regulators if the tax plan is adopted.

The Hindu reports that bitcoin would be treated like gold trading, with registered exchanges and formal taxes. The goal would be to stop money laundering and other illegal uses.