Recently, in India, there was a 30% tax introduced on digital assets along with a 1% TDS. According to the Indian finance ministry, cryptocurrencies can not be termed as currencies as they are not issued by the central bank of India which is RBI. Now, with this move, one can assume that either the government wants people to think very carefully before investing in cryptos or they want cryptos to be less influential in the country for some time. In any case they have definitely been successful to scare the beginners away.
It is considerable that the government does identify cryptos as a digital asset but with the world trend of countries and governments accepting cryptos as a payment method and India trying to achieve new heights in the technology world, any official step on it was inevitable. While there is still no proper regulation of cryptos in the country, one can neither say it is illegal to trade in cryptos nor legal. India had to take a stand sooner or later, however, the tax introduction has really been a diplomatic masterstroke, if one may call it so!
With all that, the current situation is certainly worrying. With well known exchanges in India stopping deposits temporarily, to the unexpected sudden UPI payments disintegration, this is all getting intense. While the finance ministry did say that they may introduce a digital centralized currency, there is no hope for it to come any sooner and that may or may not impact the crypto world. On the other hand Blockchain technology has been accepted widely in the country and with Prime minister Modi identifying the potential of Blockchain, many private development firms are working on it too.
All this has certainly been a roller-coaster ride and you may say this is how it is with crypto! But, one thing is for sure that people are frustrated. Traders and investors facing such challenges due to the sudden service changes by the crypto exchange giants in India, has definitely created questions of security in the crypto space of the country. Thinking about all this, one may conclude that things are blurry, and no one would want to see things blurry so people may try staying away for some time.
It could be possible that Indian government does not want to focus on cryptocurrencies much at the moment, with all the destruction and wars happening all around the globe. However, assumptions are of no use, all we can do is wait and watch carefully.
Thank you for reading!
Note: Everything written in the article, are my own personal views. Please do not take any decisions based on what is written in the article. Do your own research before making any conclusions.