India is a country where people are exploring more opportunities to grow their income base. Cryptocurrencies are one of the greatest options because it is a place where people can do 24-hour trading and they can easily grow their investments. It has already been very hard to onboard people to crypto but now after some new regulations by the government, I believe it is going to get harder. Not many people find a job in the crypto space and earn in the crypto world and try to take the money to the real world.
Most people try to invest some money and with that money, they trade and grow the money and take it back to the real world. This is how most people are trying to experiment with crypto. There are also people who use cryptocurrencies for Money Laundering and that is where the government has started watching with hawk eyes. I would say that this is probably a good move for the government to filter people who are trying to do bad things. I'm not sure how many people would welcome this move. But people should definitely welcome this and I believe this can make the crypto situation better in India.
Regulations are good
There are no changes to the regulations that are currently in place. The government is only adding a factor to control AML here where some people make crypto as an excuse to do money laundering. The tax parameters announced by the government are still intact and there are no changes to those parameters. There would still be TDS and there would still be taxes based on our tax slab. I personally think that the government is also welcoming cryptocurrencies slowly and steadily but they are trying to bring more regulations so that it is not used as an excuse to exploit the current system.
There are other countries in the world that are keeping their crypto regulations very strict. Compared to those countries, I would say that India is maybe in a better place. But I'm expecting a situation where cryptocurrency exchanges get more support from the government and start doing well in India. Right now the cryptocurrency exchanges have been asked to do KYC and provide the details to the government whenever asked.
Banks are mostly not friendly with cryptocurrency exchanges. That is one of the reasons why exchanges find it very hard to allow people to deposit or withdraw their funds. Some people make use of the P2P methods provided by some of the exchanges to do the trading. With all these challenges onboarding people to crypto is getting harder. Earlier people will have to only explain the crypto concepts but these days people are clever and they ask how they can withdraw their funds after depositing or whenever they want to withdraw. There are facilities available to withdraw crypto or convert crypto to FIAT, the government-approved methods are very minimal but soon they would still get popular.
We are hoping to see things made easier in the coming years so that more people make use of this wonderful technology and try to build their businesses on top of it. Already there are a few startups trying to make beautiful things with this technology but mostly they try to keep their base in other crypto-friendly countries and use India as their secondary base which operates fully in FIAT. If things are made easier, companies can operate fully in crypto staying inside India. Hopefully, a day would come for that soon.
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