Even though the entire world is embracing cryptocurrency, India is all set to ban them. We still don’t have any official news or statement regarding it, but leaked reports suggested that a ban is just around the corner. Reuters reported that an official from the government said India would pass a stringent law that will make even holding and mining the cryptocurrency a crime. This has made the cryptocurreny exchanges in India plead to the government not to ban crypto assets. They even said it would be better if they raise taxes but not ban them entirely.
Don’t ban crypto assets!
The Indian government is going to make a huge blunder, it seems. By banning the future of the financial world, they are curbing Indians from taking advantage of cryptocurrency’s huge growth potential. Even the exchanges of the country said that it would be a wiser idea if they could just file crypto under the highest tax category. The RBI is strongly advocating against cryptocurreny has already barred dealing the same. Simultaneously, the governor of RBI did say that blockchain has many benefits and needs to be exploited. But they are strictly against private cryptocurrencies like Bitcoins and Ethereum.
There is a high possibility that the RBI could launch its own coin and ask investors to choose that over BTC. But I don’t think that step by the RBI and the government will be well-received. But we do know how governments are, they need money to run, and the amount of taxes generated from this sector can be huge. And this is the only reason that we could expect India to reconsider their decision regarding the same.
Tax on crypto?
We can expect a 35% tax slab on returns from any crypto assets. At the same time, the crypto exchanges could be expected to pay 28% in gst to the government. Presently, there is no strict law or regulation that keeps taxes on Bitcoin and other currencies in check. So, if any law is passed soon and it doesn’t ban crypto, it will surely tax them. The amount of revenue generated from this could be huge. According to reports, as estimated $1.4 billion is held by Indians in crypto investments. So, it does seem obvious that India’s government would prefer a tax over anything else.
But if a ban does take place and the government is able to keep aside its need for revenue, what will happen? Well, we can expect that the government gives a 3-6 months period to investors to liquidate their assets. And this ban could also significantly bring down the price of Bitcoin and other cryptocurrencies.
What are your thoughts on the urge of crypto exchanges not to ban crypto? And what do you think the government will do? Let us know in the comments below. Also, if you found our content informative, do like it and share it with your friends.