To ensure a safe trading space for such crypto investors, The government may allow the use of crypto as assets in the country, though this use might be taxed for the first time ever. This means people in India may be able to buy or sell crypto currencies as shares, gold or bonds.
Does this tax system help investors to save from froud?
Cryptocurrencies have been taxes right from the beginning. If a thing is taxed that doesn't just take away the fraudulent activity for sure. Taxes are for the government least assured you won't be getting benefitted from them admist so much corruption.
The reason why it might not be good :
1. They will tax it unreasonably high hands down ( for the governmental bodies it's an opportunity to earn, might not be that good for the investors)
The reason why it might be alright:
1. The Indian government were always on and off about bitcoins therefore this might help them put a cork on the whole thing. They might finally accept it wholeheartedly and also the banks might start allowing transactions as well.
I tried to find online and it was said that nothing have been said officially but if you are holding it for more than a year they might tax it 20% as long term capital gains.