Additional Solicitor General of India at the Supreme Court, Balbir Singh, said that the taxation of digital assets was a positive development. He argued that it gave de-facto recognition and legitimacy to digital assets.

He said, "The good side of this is that it gives de-facto recognition and legitimacy to digital assets. It is a step in the right direction and will help to bring this sector into the mainstream." His comments reflect the government's growing acceptance of digital assets.

In recent months, the government has taken several steps to regulate the digital asset space, including issuing a circular clarifying the applicability of GST to digital assets and setting up a working group to study the issue of crypto regulation.

The taxation of digital assets is a significant development in the Indian crypto ecosystem. It is a sign that the government is taking this sector seriously and is willing to regulate it in a responsible manner.

The taxation of digital assets will also help to legitimize the sector and make it more attractive to investors.