Instead of an outright ban on cryptos, India will adopt a nuanced approach towards cryptos. Though cryptos may not be permitted as currencies to settle transactions, and make payments, they could be treated as assets like shares, gold or bonds.

The government is likely to classify crypto exchanges as e-commerce platforms. They will be subjected to GST. They will be put into three categories. They are facilitators or brokerages or trading platforms. They are expected to collect tax at source (TCS) from those buying and selling cryptos.

They sale, purchase and mining of cryptos are likely to be taxed retrospectively from 2017. Investors will have to pay 18 per cent GST. TCS deducted by these platforms can be set off against the tax liability of investors.

It is likely that active solicitation by companies including exchanges and platforms will be barred. It is likely to make SEBI a regulator, but a final call is to be taken yet.

There is likely to be a bill in the winter session of the parliament. The government is likely to take a middle path on cryptos.

RBI has serious concerns about cryptos and their effects on financial stability.

Blockchain technology is more than 10 year old. It can grow, with or without cryptos.