#DigitalAssetBill The **Digital Asset Bill** refers to proposed or enacted legislation that aims to regulate digital assets such as **cryptocurrencies**, **stablecoins**, **NFTs**, and **tokenized assets**. Its scope and contents vary by country, but generally, such a bill tries to define, classify, and regulate the use of digital assets within a legal framework.

### Key Features Often Included in a Digital Asset Bill:

1. **Definition and Classification:**

- Clearly defines what constitutes a *digital asset*.

- Differentiates between *payment tokens* (like Bitcoin), *utility tokens* (like those used in dApps), and *security tokens* (treated like traditional financial securities).

2. **Regulatory Oversight:**

- Designates regulatory bodies (e.g., SEC in the U.S., RBI/SEBI in India) responsible for monitoring digital assets.

- Introduces licensing requirements for exchanges, wallet providers, and custodians.

3. **Taxation Rules:**

- Specifies how gains from digital assets are to be taxed (e.g., capital gains, TDS).

- Requires disclosures in income tax returns.

4. **AML/KYC Compliance:**

- Mandates *Know Your Customer (KYC)* and *Anti-Money Laundering (AML)* procedures for all transactions and platforms.

5. **Consumer Protection:**

- Introduces mechanisms to protect investors from fraud, scams, or hacking incidents.

6. **Cross-border Transactions:**

- May restrict or govern international transfers of digital assets to manage foreign exchange risks.

### Example: India’s Context (as of 2024-25)

India has proposed but not yet passed a comprehensive **Digital Asset Bill**. However:

- Crypto income is taxed at **30%** with **1% TDS**.

- RBI has launched the **e₹ (Digital Rupee)** as a regulated central bank digital currency (CBDC).

- Draft proposals aim to ban the use of crypto for payments but allow it as an investment asset.

### Why It Matters:

A Digital Asset Bill is crucial for:

- **Legal certainty**

- **Fraud prevention**

- **Promoting innovation**