The Indian government’s connection with cryptocurrency has received a lot of attention. From high tax rates to ambiguity, crypto appeared to be at a stalemate in the country. While traders continue to be concerned about the 30% tax rule, the government has announced that it is working on classifying cryptocurrency as products or services under the GST law.
Naimish Sanghvi, the founder of Coin Crunch outrightly suggested that the government had no idea on how to regulate the crypto market.
“I’m going to take a limb and say that India has no idea how to regulate crypto. Everyone is simply giving their own version of the story. Until RBI is okay with crypto, India will not regulate or ban crypto. They will keep adding caveats to discourage trading!”
Indian investors were puzzled and discouraged following this news. However, the above news was almost foreseen when the government dropped another bomb concerning the upcoming tax reformation.
Indian government’s latest crypto tax norms leave investors ‘discouraged’; Here’s why
The Indian government has been open about its aversion to cryptocurrency on several occasions. If not its words, the government’s actions against the crypto market were a clear indication of how it felt about the market. Now, carrying forward a similar notion, the government laid out clarification about its crypto tax law as it will soon come into effect.
With only a week until the 30% tax takes effect, the Indian government chose to address the concerns about the impending measures. According to the document, investors and dealers would not be able to balance their losses from one cryptocurrency with profits from another. This would further need them to look at each digital asset trading pair individually.
Further explaining the latest parliamentary note, Aditya Singh, the co-founder of Crypto India tweeted,
The government’s decision to impose a 30 percent tax on crypto was a matter of concern to many. Singh even started a petition yearning for a ‘reasonable crypto tax policy.’ While the petition managed to garner 99,853 signatures, it spoke volumes about what Indian investors really wanted.
The Indian government has visibly turned a blind eye to the consistent plea of the country.
Additionally, mining was also a part of the latest parliamentary document. The cost of mining was thrown out of sight.
India drowns in uncertainity
Indian investors have been drowning in uncertainty. The legality of crypto still remains under the wraps because “taxing does not mean legalization.” As a result, several crypto enthusiasts across the country condemned the government’s tax norms.
Nischal Shetty, the founder of India’s prominent crypto exchanges, WazirX said,