India and NFTs: Crypto bill to include NFT-related laws

As NFTs pick up heat it is important for the government of India to implement laws to tackle issues that might exist in the future
As NFTs pick up heat it is important for the government of India to implement laws to tackle issues that might exist in the future

The popularity of non-fungible tokens has absolutely taken over the entire world. The second most populous nation, India, also had its fair share of crypto enthusiasts. According to recent reports, as many as 15 million Indians have invested in cryptocurrencies.

While the government’s stance on digital assets remains unclear, NFT adoption continues to surge in the nation. In a recent conversation with the people aware of India’s crypto bill by Economic Times, it was revealed that the government officials have reached out to tech geeks to get more insight into the situation regarding NFTs. 

It is expected that government officials will be covering everything related to cryptocurrencies, even NFTs. There will be provisions regarding the taxation, sale, and other financial details.

India turning into an NFT marketplace

Investors in India are now seeking to enter the NFT space. The source closer to the government’s crypto bill stated,

“The government could first define cryptocurrencies and then also define NFTs. For all practical purposes, NFTs could be treated in a similar way as cryptocurrencies.”

The government of India will acknowledge the monetary value associated with non-fungible tokens. This means that they will be treated similarly to cryptocurrencies, regardless of their artistic nature.

Government to tackle future regulatory issues 

Basically, an NFT is a blockchain-based asset that might include the tokenized version of a song, a video, or even an image. The source further expressed the government’s crypto stance,

“The government would define the type of crypto assets, and NFT would be specifically mentioned there. This is done to address some of the issues that could arise in the future around regulatory issues.”

As NFTs pick up heat in the nation, it is important for the government of India to implement laws to tackle issues that might exist in the future. Therefore, it is believed that the government of the nation will recognize cryptocurrencies as another asset class.

Like any other asset class, when buying and selling blockchain-based assets like cryptocurrencies and NFTs, a person will be liable to pay taxes. But, the tax rates are yet to be announced.