The Indian government is re-evaluating its regulatory approach in light of the adoption of digital assets by other countries, Reuters reported on Sunday.
Economic Affairs Secretary Ajay Seth stated that digital assets know no borders, indicating that India wants to keep pace with the digital asset revolution.
This potential policy change was announced alongside the implementation of a new tax, whereby previously undisclosed cryptocurrencies will face a tax of up to 70% under the Income Tax Act.
This change in the government's stance reflects the theory proposed by experts that if one or two nations adopt cryptocurrencies, it could trigger a competition among global powers to accumulate these assets.
Currently, India taxes gains from digital assets at a flat rate of 30%, regardless of the duration of the investment.