In 2023, India will adhere to the same strict cryptocurrency tax regulations. Nirmala Sitharaman, India’s Finance Minister, didn’t talk about cryptocurrencies, virtual digital assets, digital currencies issued by the central bank, or the digital rupee when she presented the country’s budget, which explains the latest tax rules.
India is the largest democracy in the world. Last year, it put a 30% tax on income and a 1% tax deducted at source (TDS) on all cryptocurrency transactions. It seems that industry forecasts of a “season of agony” this year were accurate.
Trading volumes dropped almost immediately, and in the nine months after the official statement, Indians moved more than $3.8 billion in trading volume from domestic to international crypto exchanges. This was a major shift from the pre-ban days, where nearly 90 percent of trading volume originated from domestic exchanges.
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Rajagopal Menon, Vice President of the Indian cryptocurrency exchange WazirX, said that “Indian crypto businesses are on the pathway to paradise” because there have been no changes to the current crypto taxes. “We are keeping our fingers crossed that the government will rethink its stance on crypto taxation.”
Since the beginning of this year, India has placed a measure regulating cryptocurrencies in “cold storage,” citing the belief that such regulation is impossible without global coordination. This is something that India has made a priority as it currently holds the G-20 presidency.
