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India Signals Crypto Policy Shift Amid Global Adoption
The Indian government has signaled a potential shift in its crypto policy, following the growing trend of global cryptocurrency adoption. This development comes as a surprise to many, given the country’s strict regulatory stance on digital assets.
In a recent statement, Ajay Seth, economic affairs secretary, emphasized that “digital assets don’t believe in borders.” This remark has led many to speculate about an impending change in India’s crypto regulations to keep pace with global financial trends.
The Indian government’s recent introduction of a 70% tax on previously undisclosed crypto gains under the Income Tax Act is a significant move. Additionally, existing rules impose a 30% capital gains tax on all crypto transactions, regardless of whether they result from long-term investment or short-term trading. These regulations have been criticized by many in the crypto community, who argue that this taxation approach aims to limit crypto trading rather than regulate it.
Amit Kumar Gupta, a Supreme Court of India legal expert, has described these taxes as “draconian.” According to him, authorities view cryptocurrencies as a financial risk rather than a technological innovation. These comments have sparked widespread debate within the crypto space.
Despite these strict regulations and taxation policies, crypto adoption continues in India. Investors and crypto exchanges closely follow regulatory updates, demonstrating their commitment to the growing market.
The Reserve Bank of India (RBI) is also expanding its plans for a central bank digital currency (CBDC). The RBI has been pushing forward with its initiative to create a state-backed digital payment system. This move highlights the government’s focus on centralized digital currencies over decentralized cryptocurrencies as international crypto adoption grows.
As a result, the Indian government’s stance remains under scrutiny in light of this policy shift signaling an openness to adapting to global developments.
Source: coinchapter.com
