Governments all over the world have been fighting Crypto for some time now apart from El Salvador which made crypto Legal tender in the North American Latina Country in September last year, other governments keep saying it is a scam, it's mainly used for money laundering and poses a threat to the economy.
Sometime last year Us Treasury Secretary Janet Yellen proposed tax on unrealized capital gains (Crypto gains) and now today Indian Finance Minister Nirmala Sitharaman announced a 30% tax on crypto profit, which is outrageous to me, I don't know if it's to punish crypto traders for making it legal to trade crypto in India.
Indian Finance Minister Nirmala Sitharaman, made her announcement on the tax on any income from the transfer of digital currency assets(Crypto) while presenting the nation's budget speech today the first day of February 2022.
Here is what she said:
There has been a phenomenal increase in transaction in virtual digital assets. The magnitude and frequency of these transactions have made it imperative to provide for a specific tax regime.
This could be because of the increase in the number of crypto investors or traders in the country, after the pandemic in 2020 so many people got into crypto pumping in millions and billions of dollars into the crypto market, Indian investors included, and also the Indian local trading exchanges have increased massively based on trading activities.
However, this 30% tax could also be a big deterrent for retail investors. Putting fat taxes on crypto profits also suggests that the government is not willing to encourage crypto investing among retail players. However, WazirX CEO Nischal Shetty sees it to be yet another step towards positive crypto regulations.
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