In India, talk about crypto, and people will look at you with raised eyebrows. It gives feeling being involed in illegal activities. It takes times to make people understand that, there is no illegally, untill and unless you you are doing with clear mind and approach. A large number of millennial have invested in crypto, at the same time, many people are unaware about crypto. For such people crypto means only #bitcoin. Crypto market has always been volatile, not only in terms of the coin price movement but also, off the market events too. It keeps sending ripples and waves now and then, to scare the investor's.
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Recently, the crypto investors in India were in shock waves upon finding that government has laid out instruction to the crypto exchange about their operation in India. The immediate impact had caused ripples in the market, with many investors started reaching out for alternatives. Even Google has removed crypto apps including Binance and Kraken from the Play Store in India, following allegations of unauthorised operations. The move is a consequence of the finance ministry issuing show cause notices to these platforms on December 28, citing non compliance with the country's money laundering laws. However, website and apps were non operational for new users, while the users having already account were working smoothly.
Government Guidelines
The one bright aspect for crypto investors are the outocoming of G20 Summit last year. Tye delegates from the differrnt countries have agreed upon implementation of a comprehensive policy framework for crypto assets. Rather than banning crypto assets from destabilizing the economy, tye countries have agreed to focus on setting up regulations.
In India, gains from cryptocurrency are subject to a 30% tax (along with applicable surcharge and 4% cess) under Section 115BBH.
Cryptocurrency trading in India is done at the investor's own risk. There are no rules and regulations or any guidelines laid down for settling disputes while dealing with cryptocurrency. This makes it a vert vulnerable choice of investment. People invest with own risk. Even though the profits from the sell is taxable people are hestiatant to withdraw. Though they see as a good oppurtunity for minting money.
On & Off Crypto Risk
Me myself being a novice in this field found it very lucrative but at same time very risky to operate. With the legal watchdogs alwsys ready to hand out notices or put us in their radar. Withdrawing the money is alwsys been a radar. As people find it very difficult. In India, we have #wazirx operating assuring a smooth transaction process, still people find them quite risky approach. In the mean time, thanks to #Hive, we have a little group in formation over discord. This helps us to transact btmetween ourself without much hustle. It all goes to the #p2p trading. But in the longer run the issue will going to haunt the investors.
Especially, paying the 30% of tax. This tracked is one of the highest in the country. This makes people to rely on offshore transaction. I known a person who males use of his #crypto in foreign countries. He has a good portfolio, and to make tye best use of it, he often uses it in offshore. He goes to #dubai and withdraw the money through #crypto kiosks. He never carry his own funds a d thereby spend them on his luxuries. But such option is not suitable for all the investors. They either have to comply with current tax laws or wait to get some more leniency from the government in coming days.
Simultaneously, the safety of this currency is alwsys in question. The numerous exchange hacking makes it very unsafe zone of investment.This is too early to say anything, but with all the ripples and waves the investors face, people prefer to play safe by staying away from the crypto investments. The future is uncertain, but looking at large investors in the background, we can only hope for some firm action on the crypto investment.