India hopes to control crypto with 18% tax

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Despite worries about the absence of adequate data privacy rules, India believes that a prohibition would enable the Reserve Bank of India to gain control over digital money.

With a few exceptions, India may restrict the use of all digital currencies if the government’s proposal to control virtual money is approved by parliament. The central bank plans to release its coin. The measure would punish anybody who mines, purchases, sells, creates, or transfers digital money with a two-year penalty.

The TDS (Tax Driven System) mechanism, according to crypto companies, is meant to prevent tax evasion and trace transactions. Unfortunately, it’s also the biggest threat to potential cryptocurrency legislation.

The week that shook crypto | Financial Times

The TDS (Tax Driven System) mechanism, according to crypto companies, is meant to prevent tax evasion and trace transactions. Unfortunately, it’s also the biggest threat to potential cryptocurrency legislation.

Because the problem is centered more on the 1 percent cap than how it is enforced, the government’s explanation will have minimal influence on arguments about bringing legal action against the new crypto tax laws.

As per Anirudh Rastogi, the firm’s founder and managing partner, no regulation oversee digital currency-to-digital currency transactions, so it’s hard to forecast what will occur in the crypto-to-crypto trade. The Indian central bank and digital currency exchanges disagreed on whether or not tax should be deducted at the source.

While the cryptocurrency industry is now uncontrolled, there is an urgent need to control the effect of this burgeoning ecosystem on India’s future technological and economic aspirations.

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