The Indian crypto scene has been fuming with uncertainty. Despite not attaining legality in the country, the government went on to impose a 30 percent tax on digital assets. This is reportedly the highest tax band in the country. As Indian investors veer into a new phase, an expensive one, it was revealed that no crypto law is in the making as of now.
Bloomberg recently reported that an anonymous source had disclosed that a law governing cryptocurrencies would be in the works only after achieving a global consensus. The source suggested that the government was far from regulating the industry. While the Indian Finance Ministry hasn’t affirmed this yet, investors have been hoping for better days in the industry.
Furthermore, this news sheds light on the fact that India might be late in embracing crypto. Even though the country is home to an array of cryptocurrency-related businesses, the 30 percent tax is speculated to put them at loss.
The crypto-verse is in fact okay with paying tax for the profits they make while trading. However, the Indian cryptocurrency market yearns for reasonable crypto tax. A petition started for this cause managed to amass a total of 1,02,956 signatures. Despite this, the tax band continues to remain the same.
Move over taxing the industry, the Indian government categorized the trading of crypto as “gambling.”
Is the Indian Crypto scene headed to its doom?
The only good thing that was born out of the pandemic was the world’s shift towards digitalization. Individuals and mainstream entities across the globe discovered the pros of employing crypto. As a result, crypto further attained a major boost and even urged countries across the globe to legalize it. Vietnam, El Salvador, Ukraine, and an array of countries have taken the orange pill.
Meanwhile, India took a 360-degree turn. WazirX’s founder, Nischal Shetty spoke about the forthcoming tax law and further explained why the government had to rethink the tax policy.
As seen above, this could be detrimental to both the crypto market as well as the Indian government.
Additionally, a few others suggested that India was going to regret its latest move.