According to a survey by the cryptocurrency exchange KuCoin, roughly 115 million Indians between the ages of 18 and 60 make up about 15% of the country’s total bitcoin users.
Players in the bitcoin industry are calling for the current levies to be rationalized as the Union Budget approaches. According to Mahin Gupta, creator of Liminal, a platform for the infrastructure of digital wallets, “We believe that the federal government should rationalize the 30% tax to encourage a vibrant information technology (IT) and Web3.0 environment that would fuel innovation and progress in the country.”
The application of a 30% tax on unrealized gains and a 1% tax deduction at the source (TDS) on any income obtained from cryptocurrency trading were both announced by the finance minister during the Union Budget last year. According to a recent survey by the cryptocurrency exchange KuCoin, there are over 115 million bitcoin users in India, who make up 15% of the country’s population between the ages of 18 and 60.
The FM noted that there is a need for international cooperation to develop a uniform taxonomy standard on cryptocurrencies by the monsoon session of parliament convened in July 2022. According to Shivam Thakral, CEO of cryptocurrency exchange BuyUcoin, “the regulators need to encourage the cryptocurrency industry to create a business-friendly atmosphere that would promote the expansion of blockchain enterprises in India.”
Additionally, The Reserve Bank of India (RBI) has cautioned against investing in digital assets on several occasions throughout the years. The RBI prohibited banks from offering services to cryptocurrency companies in 2018. The prohibition was, however, struck down by the supreme court in 2020.
