CZ Binance Hints At Rising Taxation Being Detrimental To Indian Crypto Industry
November 06 2022 - 2:16PM
NEWSBTC
The Indian government has maintained a bullish stance on its income
tax on crypto assets. The government demonstrated this with the
proposal of a Cryptocurrency and Regulation of the Official Digital
Currency Bill in 2021. However, cryptocurrencies and NFTs are
currently not regulated in India. The RBI even tried to ban crypto
in 2018. Related Reading: Why Ethereum Could Drop To $1,500, After
ETH Gained 30% In Last 2 Weeks Although the proposed
“Cryptocurrency and Regulation of Official Digital Currency Bill”
was never implemented, the government’s stance on crypto is still
unclear. However, while still weighing its stance, the Indian
government implemented a new law to tax gains and income from
virtual digital assets (VDAs). The new tax policy came to focus at
the Singapore Fintech Festival (SFF) held from November 1 to 4. At
the event, the Binance CEO, Changpeng Zhao (CZ), pointed at the
high tax rates as a killer of the crypto industry. The Singapore
Fintech Festival is one of the most anticipated events in the
crypto and Fintech industry. The event has more than 60,000
participants and 850 speakers representing banks, global financial
services firms, and policymaking bodies. Crypto Exchanges Face
Decline In Volume Due To High Taxes During a panel discussion at
the SFF event, CZ said the new crypto tax in India, which became
effective in April, may kill the industry. That is because the tax
is outrageously high, with a 30% capital gains and 1% transaction
tax on all digital assets transactions. The local crypto exchanges
reported a 90% decline in the volume of activities since the policy
became effective in April. Aside from the high tax rates, the
government tightened the regulatory processes. Crypto platforms now
have to follow more extensive Know your customer (KYC) and security
approaches. In 2019, Binance acquired an Indian crypto exchange
called WazirX. However, there was a recent issue surrounding
WazirX’s frozen assets. In a short argument between CZ and WazirX’s
CEO, CZ revealed that Binance never completed its deal with the
embattled crypto exchange. Instead, the CEO stated that Binance
only provided wallet services to WazirX as tech solutions. As per
reports, WaxirZ is going through a decline in sales volume and laid
off 40% of its workforce in October. India May Introduce More Tax
Policies At the beginning of this week, the Central Board of Direct
Taxes (CBDT) in India proposed a reformed common ITR form. The
board intends to introduce the new form as a replacement for some
series of ITR forms. The draft ITR form contains fields that
require information on foreign businesses with a user base in
India. Related Reading: Dogecoin (DOGE) Price Seen Sliding 15% In
Coming Days – Here’s Why Some tax experts commented on this move.
They said it is an attempt to include digital assets and Web3 firms
incorporated outside India in the Tax policy. However, the latest
Nasscom report stated that India has more than 450 crypto and Web3
start-ups. But 60% of the 450 start-ups are registered in
crypto-friendly countries with clear regulatory models. Featured
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