“For example, if it is a business transaction, the appropriate GST (resources and services tax) guidelines may be imposed. If it is an investment, capital gains tax may apply. If someone is very actively trading cryptocurrencies, then they can file their taxes as a business. And if it is any foreign transaction, it must be reported to the RBI (the Reserve Bank of India, the central bank) under FEMA (Foreign Exchange Management Act) regulations,” Gupta told CoinDesk.