Hello and Everyone
The topic for today's participation is quite interesting. I'll tell you why because it is about cryptocurrencies and the government. I come from a place where government and crypto cannot be in the same place and this situation has been the same for the last few years. I have been in the Crypto space since year two 1019 and it's been about five years. I think this is a good time when anyone can understand at least the basics about the market and I do have that. I'm not a pro but I know how things work in the Crypto market. I also know how the government is doing in India. So I am from India and India has been one of the countries for the last many years where crypto is in the neutral state. I mean to say neither it is legal nor it is illegal so you can trade crypto on exchanges and you can also hold it. There is no problem with holding crypto and when you trade, there is also no problem, but if you earn a profit, you need to pay a 30% tax on the income.
The text was applicable from the last financial year which was started in 2022. So it's like we have completed two financial years with these pack guidelines in the crypto market. I remember the days when I was new in this market that time the government was completely against crypto and they also banned banking support for Crypto exchanges. This was a tough time for the Crypto community in India but later on after a few years, things started to improve. I would not say that the government is favouring crypto now but at least now they are not talking about banning it. We know that banning capital is not possible and what we can do is we can ban crypto companies that are dealing in this product. They have again the knit because they blocked nine international crypto exchanges in India.
The government has blocked the URL and application access for nine international crypto exchanges. These applications and URLs are blocked on the ISP level so no matter what company you use everyone has blocked these URLs. So we can also say that these exchanges are not banned however access to these exchanges has been blocked and now users cannot access them. This has been done because the government has asked these exchanges to get registered but the process is going to be long for these companies. I heard the news last week that some exchanges are trying to get in touch with the relevant authorities to get registered in India. I hope that it happens so that Indian users get the option to use international crypto exchanges.
And now if we talk about the taxation of crypto by the government so consider it as another problem. We need to pay taxes if there is an income through Crypto but if there is a loss then forget the Lord's adjustment. Any income from Crypto will be liable to pay a 30% tax. There is no slab for taxation which is very bad. No loss set off is another problem for people because sometimes they have not made money throughout the year but they have to pay tax on the transactions where they made some profits. As per the government no need to pay tax in case of loss but that loss cannot be offset against overall trading in the financial year.
So basically the government and Crypto in India are on a different spot. I don't know how things will be in the next few years in the country and how favorable the government is going to bring rules for this industry. The world is doing great in Crypto and some of the countries are taking a lead I hope India also does something like this to take the country forward on the journey of blockchain and crypto.
This is my participation post for Initiative: February Monthly Prompt
Check out the above post if you are interested in participating in this initiative every day there is a different topic that is fun and allows us to share our thoughts.
Thank you so much
Stay Safe