The Central Economic Intelligence Bureau (CEIB) of India, which is an important branch of the Finance Ministry of the country, has recently proposed a new rule related to Bitcoin trading. As per the proposal by CEIB, they want the government to impose an 18% tax on Bitcoin trading. According to one report, the average amount of Bitcoin transactions in India costs around $5.5 billion which is 40,000 crore INR. If this proposed 18% goods and services (GST) tax by CEIB will be passed by the government, they will be able to gain huge tax revenue. CEIB Requests Indian Government to Consider Bitcoin as Intangible Asset In this proposal, CEIB has requested the Indian government to consider Bitcoin as an intangible asset. Hence, it is a must to impose GST on all the transactions that include Bitcoin, across the country. India is a country that is not having any regulatory clarity when it comes to cryptocurrencies. Indian authorities have claimed the usage of Bitcoin in several illegal activities like money laundering and similar ones. India is the third-largest economy across the world and this is why the country is having a huge potential of being a better crypto player. Despite this, the country has been facing huge regulatory challenges when it comes to the crypto market, forever. Indian Crypto Market Flourishing Ever since the Supreme Court of India lifted the banking ban on crypto exchanges that were imposed by the Reserve Bank of India, the Indian crypto market has gone through several developments. CoinDCX, which is the largest crypto exchanges in the country, has reported a huge increase in volume and daily active users as well. According to the exchange, there has been 3x growth in the overall volume and 4x growth in daily active users. It has also raised around $14 million from a recent funding round in December.
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