India’s finance secretary says crypto trading is a regulatory ‘gray area’

As the Indian government debates an official tax on cryptocurrencies, the country’s finance secretary T V Somanathan has said that the industry is currently operating in a “gray area”.

In fact, cryptocurrencies are taxed the same way as winnings from gambling. “They are in a grey area. It’s not illegal to buy and sell crypto”, the finance secretary told Bloomberg Television.

The current framework proposed by the government would treat crypto the same way as winnings from horse races or bets on other speculative transactions, Somanathan added.

This comes in the wake of rumors that India may seek to completely ban the cryptocurrency industry only to announce a surprise 30% tax on Tuesday, which is now very likely to stick.

However, the 30% is not a final solution and the industry – while welcoming the regulatory clarity – has called the rate steep.

Before any tax is imposed, India would have to clear the proposal with the Union Cabinet, before it’s taken to lawmakers.

However, nothing is set in stone. “What will happen to the future regulation of crypto that’s an ongoing debate”, Somanathan added.

This means that the final tax rate and framework may have a completely different look, depending on what is happening internationally and in the country.

Nevertheless, this approach is refreshing as previously India underwent several attempts to completely ban the crypto industry.

Meanwhile, you can still use crypto to bet on your favorite sports at places such as Cloudbet, 1xBit or Sportsbet.

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Written by Barney

Co-founder

Barney is co-founder of CryptoGamblingNews.com. When not at work he can usually be found behind a Nikon. He's won numerous international competitions for his photography and volunteers as a content creator for aid organisations in Africa.

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