India’s crypto exchanges have asked the relevant central bank, the Reserve Bank of India (RBI), to clarify their legal status. The legal questions also include those regarding the tax treatment of crypto income and profits. As in many cases, there are no uniform approaches to taxation.The background to the demands is in particular the continued refusal to offer its own banking services, which a number of stock exchanges would like to offer. The Indian Supreme Court overturned the previous business ban in this context.
Same court repealed
At the beginning of March this very same court repealed the previously applicable RBI regulations for the banking industry and other financial service providers. However, one of the India Times reports showed that because of the uncertain legal situation, the institutions of the Indian financial world are probably not ready to implement the court’s new orders – not as long as the central bank does not create an understandable framework.The newspaper says that many front-row crypto exchanges sent a letter to RBI asking for legal clarity. It needed understandable parameters for the crypto industry with which companies can work on secure legal ground. It is not least about whether Bitcoin and cryptocurrencies are generally classified as raw materials, foreign exchange, services or goods.