You can see the rules and regulations in other jurisdictions.
Although virtual currencies are not considered legal tender, the Supreme Court observed that certain virtual currencies may qualify as payment instruments, securities, or commodities even though they are not considered legal tender. From a regulatory standpoint, the Ministry of Finance notes that categorizing tokens based on their characteristics is essential, as it addresses the lacunae in regulating virtual currencies, including tokens. As a result, tokens can be divided into utility tokens (used to gain access to a company's products) and security tokens (representing investment in the company). The Howey test is proposed as a means to identify tokens as securities and therefore be subject to regulation. However, the report does not provide details of what regulations should be put in place concerning specifics, such as linking tokens with underlying assets or the type of assets to which they can be linked. Nonetheless, recent news reported that the Indian government plans on introducing a bill to regulate digital virtual assets in the country. In fact, the Finance Minister of India, in the Budget Speech for 2022, has introduced a flat rate of 30 per cent tax on virtual digital assets (despite not commenting on their legitimacy), and the Finance Bill has introduced a broad definition of the term 'virtual digital assets', including non-fungible tokens as well. The RBI also announced that it would launch a digital currency in the fiscal year 2022-2023, according to the Budget Speech for 2022.1
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