The Indian minister says that crypto transactions are ok as long as they follow the laws
The Indian minister says that crypto transactions are ok as long as they follow the laws
In a significant development that indicates that the Indian government may not fully share the central bank's excessive hostile attitude towards cryptocurrencies, a Junior Minister explained that such activities are in order as long as they follow the existing laws.
This is in a sharp contrast to the crypto ban of the Reserve Bank of India (RBI) in 2018 and for the not complete opening of the sector, even when the Supreme Court lifted the RBI release in 2022 and described it as illegally.
Krypto is fine
today there is nothing that forbids crypto as long as they follow the legal procedure, "said Rajeev Chandrasekhar, Minister of State for Information Technology and Electronics, on Thursday at an event.
These comments are gaining in importance, since the Indian government will present the annual budget for the upcoming fiscal year on February 1.
Local crypto exchanges and investors who were confronted with an extremely unfriendly regulatory environment-from high taxation to the refusal of banking services-have asked for some reliefs and expect them to be announced in the household proposals that come into force in parliament from 1.4.
"We have suggested that our representation for the upcoming Union budget 2023-2024 to reduce the TDS set to 0.01 %. This lower sentence will help Indian VDA users to offer competitive prices and to protect them from the risk of un-regulated Sumit Gupta, co -founder and CEO of Coindcx, in an explanation.
The hard attitude of the RBI
In the past few months, RBI-Gouvenur Shaktikanta has described the cryptocurrencies as something that has no underlying value and is a bad cousin of gambling, which can lead to the dollarization of the economy and even trigger a global financial crisis if efforts are made to regulate and allow it to work.
but a study recently carried out by Nasscom suggests that India's talent pool drives the global web3-push and constitutes at least 11 % of the workforce. It also underlines the fact that over 60 % of Indian Web3 startups are registered outside the country due to the unfavorable regulatory environment. Available data indicate that at least 7 % of the Indians have kept or have done.
Ecosystem Painstations
At the moment the pain point in the Indian crypto ecosystem is the high tax system, which provides for a transaction tax of 1 % and a tax of 30 % for profits from cryptocurrency transactions. The government's logic in the introduction of a crypto transaction tax of 1 % was to pursue all such transactions for tax purposes.
actors of the crypto industry such as Sumit Gupta argued that this purpose can be achieved by collecting a lower tax rate. Since high taxes and strict regulations have caused several startups to draw from India in cheap jurisdiction such as Singapore and Dubai, the government is expected to loosen them to promote "innovations" in the blockchain area.
The Indian tax authorities have taken around $ 7.4 million of crypto transaction taxes since their introduction from July to mid-December. The low tax collection is another argument that is cited for a reduction in transaction tax, which proves to be prohibitiv.
.