Cryptocurrency exchanges may be classified as e-commerce platforms

Crypto exchanges proposed to be classified into 3 categories; may have to register under GST

The government is looking at classifying cryptocurrency exchanges as e-commerce platforms and imposing 1 per cent tax collected at source on them under the goods and services tax (GST) regime. The planned move is aimed at monitoring virtual currency transactions if the government decides to regulate the space.

Cryptocurrency exchanges have been proposed to be classified into three categories: Those that act as a facilitator, brokerages that allow buying and selling, and trading platforms that provide an interface for trading. These may have to be registered under GST and collect TCS from those buying and selling cryptocurrencies through their platforms.

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