Crypto: In India, the assets of one of the largest exchanges frozen

India is currently in the midst of budget consultations. In the same vein, the Bharat Web3 association has submitted a recommendation to the Indian Ministry of Finance. The latter is about the high taxes as well as the strict regulations of the crypto market.

The 30% tax is too high according to Pushpendra Singh, promoter of blockchain and decentralized finance applications

Too high crypto taxes, says BWA

A strong crypto advocate, Bharat Web3 (BWA) complains about unfriendly taxes imposed on cryptocurrency players. According to this Indian association, the Ministry of Finance introduced a capital gains tax during the fiscal year 2022-2023. This amounts to 30%. In addition, there is a withholding tax of 1% on transactions.

That’s not all ! The Ministry of Finance in India also prohibits investors from deferring loss and sharing contributions on appropriate modifications. Any loss incurred during the transfer of a virtual asset could therefore not be deducted.

For the BWA, these new measures harm the growth of the Indian crypto sector. They even risk destroying it. Especially since the market is currently experiencing a downtrend, not to mention the recent collapses of several crypto companies.

Priority to strict regulations!

All crypto businesses in the world are now facing a major problem: the lack of regulations. India is no exception. The BWA also spoke about the latest events in the cryptosphere. According to this association, the collapses of large crypto companies (like Terra Luna and FTX) result from the absence of a legal and regulated framework.

To avoid this kind of situation and thus develop the cryptocurrency market in India, the BWA has therefore asked the Ministry of Finance to put in place more solid and strict regulations.

Crypto is finding its place very well in the Indian market. A situation that delights crypto investors. However, cryptocurrency assets have been taxed at 30% since April 1, 2022. And now crypto advocates are calling for tax relief! To be continued…

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