Indian Government Considers Tax on Bitcoin Purchases

Indian officials have been meeting for months to develop a legal framework for digital currencies, forming a special task force in April to study the issue and develop possible options. Now, according to a local publication, new details on that process are emerging, including the possibility of taxes. Notably, according to one official's account, the topic of banning cryptocurrencies was indeed broached during a recent meeting – but in the end, the proposal received little support. The official told the publication:

"Banning will give a clear message that all related activities are illegal and will disincentivize those interested in taking speculative risks, but it was pointed out it will impede tax collection on gains made in such activities and that regulating the currency instead would signal a boost to blockchain technology, encourage the development of a supervision ecosystem (that tracks legal activities and may also assist in tracking illegal activities) and promote a formal tax base."