Indian regulators have decided against banning bitcoin in their country, and instead look toward applying a goods-and-services tax on BTC instead.
As Coin Telegraph notes, India has considered a wide range of measures, but appears to be settling on some kind of tax structure for cryptocurrency:
In recent months a legal framework has been discussed by Indian officials as to how best to integrate the booming digital currency into its structures. A taskforce has been working to determine the legality of things like Bitcoin under the law in India as there was once a thought to place a full blanket ban on the currency in the heavily populated nation.
Now, however, it is being reported that taxes are the probable outcome from this enquiry which will render the cryptocurrency legal, but also affect its growth as a decentralized alternative currency.
Is this good news or bad news for bitcoin? On one hand, we’re seeing mainstream acceptance of cryptocurrency. On another, we’re seeing it treated like any other commodity, which undermines its uniqueness and decentralized nature.
India has cracked down considerably on its massive black market in recent years, limiting gold purchases and doing away with large denomination bills. The measures initially hampered economic growth, but have proven fruitful in the longer term.
At the very least, this situation is certainly worth keeping an eye on as the story continues to develop.
Bitcoin was trading at $1,950.04 Sunday morning, down 2.17%.