Cryptocurrencies may not be treated as currency by the government as the central bank alone has the authority to issue currency. Cryptos, therefore, in the proposed regulation will not be used as a medium of exchange for buying-selling.

Cryptos can be defined in terms of their use. They could be treated as assets or commodities. In fact, these are digital assets.

Crypto exchanges have made regulatory policy recommendations. They have suggested registration of crypto exchanges. According to them, crypto tokens should be treated as digital assets. There should be exchange ownership parameters, KYC, accounting and reporting parameters.

Crypto currencies covered under government definition may be allowed to be traded in India. The government will spell out its taxation treatment, say security transaction tax or revenues earned as business income and capital gains treatment.