According to people familiar with the matter, an Indian ministerial panel will meet next week to discuss a goods and services tax on cryptocurrency transactions.

A group of Union and State finance ministers is seeking to expand the tax net to more efficiently track transactions in virtual digital assets, people familiar with the matter said. The group will hold a two-day meeting on June 28 in the northern Indian state of Chandigarh.

The people said the panel is unlikely to finalise the rate at an upcoming meeting but could discuss placing it in the top 28% range.

Earlier this year, Finance Minister Nirmala Sitharaman imposed a 30% tax on income from transfers of virtual assets and a 1% source tax on all crypto transactions to assess the size of the country’s crypto market and track users. The move is seen as removing uncertainty about the legal status of cryptocurrency exchanges.

However, the imposition of a sales tax on digital currencies remains unclear due to ambiguity in their treatment as goods or services and the lack of a regulatory framework.

Bloomberg earlier reported that the Union government is already working on legislation to regulate or strengthen regulation. However, it is expected to do so only after a global consensus on regulating such assets.

Digital currencies and other risky assets have come under pressure throughout the year as central banks worldwide begin raising interest rates to quell soaring inflation. Bitcoin is down about 50% this year, and Ethereum is down 70%.