The government of India is working on a Consultation Paper on cryptocurrency assets in collaboration with the IMF and World Bank. According to a local news source, the Secretary of Economic Affairs, Ajay Seth noted that the document will facilitate a uniform regulation on virtual assets.
Consultation Paper Will Help Crypto Regulation In India — Ajay Seth
Ajay Seth commented on the consultation paper during an event that was held on Monday. He stressed on the need to adopt a cryptocurrency regulation method that will be applicable in every part of India.
Furthermore, he added that the only way to achieve this is to consult other countries that are vurrently regulating crypto. Hence, India’s collaboration with the IMF, World Bank and various nations of the world on how to best regulate virtual assets uniformly.
Before, the government of India has always taken a stiff method on cryptocurrency trade within its borders. One that is believed to have contributed to the recent fallout of investors from its crypto ecosystem. Particularly, with respect to the country’s relatively high tax rate on digital assets.
Earlier in this year, the deputy governor of the Reserve Bank of India, Rabi Sankar in a report to the government advised that virtual assets trade should be banned in the country. He noted that the exceeds of the crypto industry does not favor the Indian Rupee but only the US dollar. Hence, banning cryptocurrency trade in the country will restore the value and more patronage of the Indian currency.
Shortly after that, the Indian government then introduced a tax policy for investors in the crypto industry within its territory. The law stipulates that 30% will be taxed on profits generated from crypto related trades. The policy however was welcomed with numerous spite and appears to have since not been favorable for cryptocurrency enthusiats.
The country has also ensured due diligence to punish offenders of its policies on crypto regulations, most especially tax evasions.
The government of India charged eleven crypto exchanges for tax evasion and approximately $12.58 million was recovered from them all.