India’s Finance Minister Nirmala Sitharaman emphasized strict measures against crypto following the collapse of FTX
Nirmala Sitharaman, India’s finance minister, today presents the Economic Survey 2022-2023 to the Parliament. The Indian government is not expected to soften its strict stance against cryptocurrencies, especially in light of the failure of the crypto exchange FTX, despite the hopes of the country’s crypto community for relief from crypto taxes.
In fact, India is likely to advocate for a globally accepted standard to regulate the crypto industry.
Read more: Indian Crypto Association Requests Relief from Heavy Taxes
India’s Economic Survey reaffirms its strict policy on cryptocurrency.
Nirmala Sitharaman, the Indian finance minister, has maintained her steadfast opposition to cryptocurrency. Sitharaman proposed the Finance Act 2022 last year, which charged a 30% profit tax and a 1% tax deducted at source (TDS). Despite a rise in crypto adoption, this resulted in a significant drop in trade volumes in India.
The recent failure of the cryptocurrency exchange FTX and subsequent sell-off in the cryptocurrency market are highlighted as raising questions about market vulnerabilities in the Economic Survey 2022-2023.
Additionally, it highlighted a statement issued jointly by the Federal Reserve, the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC) expressing concerns about the risks to the banking system.
The Indian government seeks a worldwide approach to regulate cryptocurrency because the crypto industry has no geographical restrictions.
The market is still being damaged by the FTX contagion, and crypto firms like Genesis, DCG, and Gemini are at risk of being forced into bankruptcy. This month, Genesis Capital, the lending division of Genesis Trading, filed for bankruptcy.
Read more: Genesis Bankruptcy: A Warning for the Crypto Industry.
Tax Relief for the Crypto community
The Indian crypto community is hoping that the government will lower taxes and TDS to 0.1%, but there is a possibility that there are other plans in the works.
Crypto taxes “require a lot more clarity,” according to Subhash Chandra Garg, a former finance secretary of India, and he may not predict any fresh adjustments in the future budget of 2023.
Proof-of-reserves (PoR) was issued by Indian cryptocurrency exchanges CoinDCX and WazirX, demonstrating transparency and laying a solid basis based on the principles of trust, safety, and security. The Indian crypto community would be impacted by India’s cautious stance in the wake of FTX.