As a seasoned researcher with extensive experience in the field of blockchain technology and cryptocurrencies, I find myself deeply concerned about the current state of crypto taxation in India. Having closely followed the developments in this sector over the years, it’s evident that the Indian government’s approach seems more like a misguided attempt to suppress innovation than a legitimate effort to combat illicit activities.
A lawyer has contended that the harsh cryptocurrency taxes imposed by the Indian government could be an effort to suppress or phase out blockchain and digital currency technology, as officials seem to view them primarily as tools for illegal activities such as money laundering and funding terrorism.
At the 2024 Peer-to-Peer Financial Systems Workshop, Amit Kumar Gupta – a lawyer at the Supreme Court of India and IIT-Kanpur – shared his findings from a research paper about cryptocurrency taxation in India.
Gupta clarified during his talk with CryptoMoon that India’s cryptocurrency and blockchain sector is burdened by taxes but devoid of regulations. He pointed out in the interview that this situation arises from a lack of comprehension among Indian regulatory bodies regarding the genuine applications and true potential of Web3 technologies.
The new Indian cryptocurrency regulations, imposing a 30% tax on profits and prohibiting users from deducting losses, took effect on April 1, 2022, as per Gupta. He additionally pointed out that not only are profits taxed but also each crypto transaction carried out by users.
Not understanding blockchain technology
Gupta characterized the tax system as excessively harsh, attributing its origins to a perceived lack of technical knowledge among government officials.
Gupta shared with CryptoMoon that the purpose of the tax is primarily to deter individuals from utilizing cryptocurrencies. In other words, he stated that the tax serves as a disincentive for people engaging in crypto transactions.
“Their stand is that we are not going to use or allow anyone to use cryptocurrency because this technology is only for money laundering and terror funding. These kinds of activities.”
The lawyer highlighted that the Indian government sees crypto as “worse than gambling.”
As a crypto investor, I firmly believe that India’s current tax structure could potentially drive local crypto innovators away from our shores and towards countries with more transparent regulatory frameworks.
Gupta stated that no clearances are given, and strict restrictions apply for those involved in cryptocurrency or blockchain. He explained that when a profit is made by founders, traders, or anyone else in this field, they tend to leave the country.
India has the potential to set a strong example
In spite of the regulatory ambiguity in India, tech startups persistently pursue Web3 initiatives within the nation’s borders. Rohit Mohan, CEO of NC Global Media – a Web3 marketing firm based in India, shared with CryptoMoon that although India exercises caution regarding cryptocurrencies, its developers remain at the forefront of innovation. He elaborated:
“Major players are entering the market. While widespread crypto adoption may take time, India can potentially set a strong example globally.”
Additionally, Mohan emphasized the significance of education. He strongly feels that teamwork and educating users are key priorities.
Read More
- DYM PREDICTION. DYM cryptocurrency
- ZK PREDICTION. ZK cryptocurrency
- CYBER PREDICTION. CYBER cryptocurrency
- JASMY PREDICTION. JASMY cryptocurrency
- POPCAT PREDICTION. POPCAT cryptocurrency
- SKEY PREDICTION. SKEY cryptocurrency
- TURBO PREDICTION. TURBO cryptocurrency
- Top gainers and losers
- BNB PREDICTION. BNB cryptocurrency
- XRP PREDICTION. XRP cryptocurrency
2024-10-17 16:40