Indian regulators will treat cryptocurrencies as commodities and permit trading based on the technology type.

According to a report by The Economic Times in India, the country is studying a new plan to regulate cryptocurrencies. The proposed bill aims to define cryptocurrencies in a new draft law and suggests categorizing them based on their attributes.

According to a report by The Economic Times, India is exploring a new plan to regulate cryptocurrencies, intending to define cryptocurrencies in a new bill draft and propose categorizing cryptocurrencies based on their attributes.

The report cited the views of three individuals familiar with the development, stating, "Cryptocurrencies will be treated as assets or commodities for all purposes, including taxation, as well as use cases such as payments, investments, applications, etc."

One anonymous source mentioned that crypto assets can be classified based on technology and defined by their ultimate use, so before discussing how regulations should operate, the government must clarify the meaning of cryptocurrencies. However, the government does not want cryptocurrencies to be used for payments and settlements. Additionally, the government will decide which cryptocurrencies will be allowed to trade in India.

India is categorizing cryptocurrencies based on the technology they use and focusing on the ultimate purpose of the asset to clarify the regulatory scope. Following the news, India's government plan has been well-received by the Indian crypto market.

Nischal Shetty, CEO of the cryptocurrency exchange Wazirx, stated, "This step is positive for the crypto industry, and I am glad that the government is moving towards crypto regulation. This will make the entire industry more transparent and drive more entrepreneurs to join, reducing investors' fears about the Indian crypto industry. It will also boost confidence and bring stability for retail investors and traders."

Vikram Subburaj, CEO of the cryptocurrency exchange Giottus, believes, "Like the internet, cryptocurrencies have multiple use cases, so it is best to adopt a nuanced approach rather than a binary one-size-fits-all approach."

Edul Patel, CEO of Mudrex, commented, "The idea of categorizing cryptocurrencies based on their use cases is well thought out, and if effectively implemented, will have a significant catalytic effect on the newly recognized asset class. More importantly, the government acknowledges that cryptocurrencies are not just investment tools but also have practical use cases."

This article is authorized to be reprinted from Horizon News Network.