Industry association IndiaTech.org has proposed defining cryptos as digital assets and not currencies similar to other assets such as gold, stocks, or marketable securities.
The proposal is part of a whitepaper released by the association, which includes five key points aimed at providing regulatory clarity to crypto assets and exchanges in the country.
“Several countries such as the US, Australia have taken a very similar approach and have defined crypto assets as property,” the whitepaper has recommended.
It has also proposed introducing a system for registering Indian registered or founded cryptocurrency exchanges in the country.
The association has recommended permitting innovative uses of crypto by businesses and creating specific safeguards to protect retail investors from token issuance.
Taxation proposals
It has also called for a clear framework for taxing cryptos in the country.
“Enable taxation (direct and indirect) to treat crypto assets just as other current assets (but not cash), permit disclosures and regulate import which would result in additional revenue generation,” said the whitepaper.
It has also proposed putting in place checks and balances through well-defined reporting mechanisms, accounting standards and mechanisms to counter suspicious activities and transactions.
Regulatory system
Further, IndiaTech.org has suggested self-regulation for the industry based on a code of conduct that is framed in line with the government’s aim of safeguarding consumers as well as ensuring financial stability.
“The foremost need today is for this sector to be granted the much-needed regulatory clarity that it has been seeking. We are hopeful that the government will work with the industry to regulate the sector and that a progressive approach is adopted while doing so,” said Rameesh Kailasam, CEO, IndiaTech.org.
The whitepaper comes at a time when the government has been looking at banning cryptocurrencies in the country.
“More than being a replacement to fiat currencies, crypto by nature is a strong digital asset, a store of value,” said Sumit Gupta, Co-Founder and CEO, CoinDCX.