The Indian government may be considering creating a regulatory framework for cryptocurrencies as early as February, based on digital currencies as an “asset”.

26 report by India’s Business Today news agency, officials from the country’s Treasury Department said a potential regulatory framework would treat cryptocurrencies closer to a commodity than a currency. If the law goes into effect, it would take a different approach than an outright ban on digital assets in the country, which some Indian lawmakers have reportedly been considering.

Officials have added that potential crypto legislation in the country is likely to come into effect when the government presents India’s Union budget on February 1, which goes into effect immediately in January of the next fiscal year. They added that they worked with the Reserve Bank of India (RBI) to work out the details of a crypto regulatory framework.

Marking cryptocurrencies as “owned” under Indian law could have tax implications for investors and retail exchanges in the country. India’s Department of Taxation is due to look into the taxation of crypto income by exchanges and exchanges, but it appears that at the time of the export, no decision has been made by anyone in the government.

Related: The proposed law banning cryptocurrencies is under scrutiny by the Indian government

With a population of around 1.4 billion, India’s decision to create a specific regulatory framework for cryptocurrencies is likely to create significant ripples across the room. The government has largely taken a firm stance on regulating cryptocurrencies since lifting a mass ban on RBI in March. Since then, numerous reports citing sources have been circulating banning cryptocurrency trading in India and also examining alternatives to regulating digital assets.

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