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According to a Bloomberg article, India would draught cryptocurrency laws only once a worldwide agreement on their regulation emerges.
As per a source close to the news agency, the administration has no plans to pass legislation to regulate or tighten rules anytime soon.
Finance Minister Nirmala Sitharaman announced intentions to tax the profits from the transfer of virtual assets at 30% in her Budget 2022 proposal, bringing the Indian government one step closer to resolving uncertainty regarding the legal status of crypto transactions.
It had intended to introduce legislation to clarify the government’s position on the issue.
India’s unparalleled decision for a hefty 30% tax
From April 1, the Indian government will impose a flat 30% tax on the transfer of virtual digital assets (VDAs) or cryptocurrency.
In addition, each transfer of such assets will be subject to a 1% tax deducted at the source (TDS). The TDS provision, on the other hand, will go into effect on July 1.
In January, in his visit to the World Economic Forum, Prime Minister Narendra Modi stated that a globally consistent strategy for cryptocurrencies is required, and individual country initiatives will not suffice.
After the country’s top court overturned the Reserve Bank of India’s regulations in March 2020, crypto investments exploded in India.
According to research released in October by Chainalysis, a crypto-analysis business, the Indian market expanded 641 percent from July 2020 to June 2021.
FM Sitharaman highlighted during the budget session that taxing virtual assets does not imply that the government is legalizing them.
“At this moment, we are not doing anything to legalize or outlaw it,” Sitharaman said in response to a question in the Rajya Sabha on the plan to collect a 30% tax on income from virtual assets.
The decision to tax crypto at 30% was questioned by many and had sent waves of disappointment among individual investors, traders and miners.
Nischal Shetty, CEO of Wazirx, stated that the government needs to rethink the tax policy, or it will blow off the investors who might move off to foreign exchanges. At the time of writing, 1,02,982 people have signed a petition urging the government to rethink this unreasonable tax policy.