Just-In: India Takes Cautious Approach Towards Crypto After FTX Crisis

Feb 01, 2023 | wjb news

Indian Finance Minister Nirmala Sitharaman submitted the Economic Survey 2022-2023 in the House of Representatives today. Although the Indian crypto community expects to reduce the crypto tax, the Indian government departments are unlikely to change their strict views on cryptocurrency, especially after the collapse of the cryptocurrency trading center FTX. In fact, India may promote the development of a worldwide relevant standard for the management and control of encrypted ecosystems.

India strictly implements the strict view on cryptocurrency in the economic survey

Nirmala Sitharaman, India's finance minister, preserves her harsh views on cryptocurrencies. Last year, Sitharaman promulgated the 2022 Financial Act, which levied 30% tax on profits and deducted 1% tax (TDS) at the source. This has led to a significant decline in the volume of cryptocurrency transactions in India, although the adoption rate of cryptocurrency has increased.

The 2022 – 2023 Economic Survey explains how the recent collapse of the FTX encryption trading center and the sale of the encryption market have caused anxiety about the vulnerability of the industry. It also cited the joint declaration of the Federal Reserve meeting, the Federal Deposit Insurance Corporation (FDIC) and the Office of the Superintendent of Monetary Engineering (OCC) to describe the anxiety about the systemic risk of banks.

Given that there is no boundary in the cryptocurrency sales market, the Indian government department is looking for a worldwide way to control cryptocurrency. The spread of FTX still determines the sales market, and encryption enterprises including Genesis, DCG and Gemini are subject to bankruptcy risk. Genesis 1 export trade credit business Genesis 1 assets announced bankruptcy this month.

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Tax reduction and exemption for encryption community

Although the Indian encryption community expects the Indian government to reduce the tax burden and TDS to 0.1%, the government department is likely to have other plans.Former Minister of FinanceIndiaSubhash Chandra Garg said, "cCryptocurrencyThe tax must be clearer. He may not see all the new developments in the futureExpense budget2023.”

India's crypto trading centers such as CoinDCX and WazirX release Proof of Reserve (PoR), which shows clarity and establishes a solid foundation on the premise of trust, security and security. However, India's prudent approach after FTX will affect India's encrypted cells.

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