Indian court reiterates that cryptocurrency trading cannot be deemed illegal, grants bail to Yes World CEO
The High Court of Odisha state in India has reiterated that cryptocurrency trading is neither prohibited nor illegal in India. The court granted bail to Sandeep Chowdhury, CEO of Yes World, on the grounds that there is no official ban or illegal activity against cryptocurrency trading in the country. Previously, Chowdhury was detained on suspicion of deceiving investors through a Ponzi scheme or multi-level marketing plan disguised as a cryptocurrency business.<br>Although India currently lacks specific cryptocurrency regulations, the government imposes heavy taxes on cryptocurrency trading. The earnings from virtual digital assets (VDA) are subject to a 30% tax, and users cannot offset their profits with losses like they can with stocks. In addition, the 1% withholding tax (TDS) on digital asset transactions further affects traders.
Reserve Bank of India Takes Cautious Approach to Digital Rupee Development Amid Privacy Concerns and No Timeline for Retail CBDC Implementation
The Reserve Bank of India is carefully developing its digital rupee and exploring technology solutions to address privacy concerns. While the central bank may not object to a reduction in taxes on crypto, it is not their responsibility to legislate taxes. The RBI has achieved a significant milestone of one million transactions in a day for its retail CBDC pilot program, with the assistance of banks depositing employee funds in CBDC. Additionally, the central bank is searching for technological solutions to address privacy concerns in CBDC usage, and a privacy legislation is not the only option. India's finance ministry has decided against reducing taxes on cryptocurrency, including the 1% tax deducted at source on every transaction. Despite the industry's push for a tax reduction, a recent think tank study suggested a 0.01% tax instead of the current 1%. The Reserve Bank of India remains opposed to cryptocurrencies, with Governor Shaktikanta Das stating that India cannot afford the risk from crypto. However, startups may have the opportunity to participate in the RBI's CBDC pilots in the future.
India's Interim Budget 2024-2025: People-Centric Inclusive Development, Infrastructure and Investment, and Reduction of Fiscal Deficits
India's Finance Minister Nirmala Sitharaman presented an interim budget speech lasting just 58 minutes, ahead of upcoming elections. The full budget will be presented by the new government in July, with a focus on economic growth and modernisation by 2047. Key features of the budget include people-centric development, policies for the poor, youth and farmers, sustainable development, infrastructure and investment, and reducing fiscal deficits. The budget retains direct and indirect tax rates, with no changes to corporate tax, but offers tax benefits to startups and extends tax exemptions for some IFSC units. There is no relief for the crypto industry, with a flat 30% tax on virtual assets remaining in place. Infrastructure spending will increase by 11%, with major schemes receiving a boost, and the government aims to reduce its fiscal deficit to 5.1% of GDP in 2024-25.
CoinDCX and WazirX Urge Crypto Tax Relief in India's 2024 Budget
The Indian government has imposed heavy taxes and increased scrutiny on the crypto industry in the past two years, causing many people to hesitate or completely withdraw from trading and investing in crypto. The founders of top crypto exchanges CoinDCX and WazirX have expressed concerns about the almost shadow crypto ban in India and have called for a reduction in crypto taxes in the 2024 budget. They are urging a reduction in tax-deducted at source (TDS) from 1% to 0.01% and a decrease in the crypto tax rate to 30%, as well as the establishment of a self-regulatory body for the crypto and blockchain sectors. The decline in trading volumes on India's crypto exchanges in the last two years, combined with the worse bull market, has led crypto investors to demand a stable and trustworthy environment in which to thrive.
Indian Web3 Community Urges Changes in Cryptocurrency Tax Regulations Ahead of Union Budget 2024 Announcement
As India's Finance Minister prepares to announce the budget provisions for the fiscal year 2025, the web3 community in India is calling for changes to cryptocurrency tax regulations. The community is using the hashtag '#ReduceCryptoTax' on social media to express their demands, which include more flexible tax slabs, a reduction in the Tax Deducted at Source (TDS) from 1% to 0.01% on each crypto transaction, and the ability to carry forward losses. The crypto sector argues that current tax laws hinder crypto growth in India and lead to a talent exodus to more crypto-friendly nations. The community is also advocating for clear legal frameworks, tax regularization, and policies fostering innovation and research in the digital asset space.
Binance, Kraken and other nine trading platforms have been removed from Google App Store in India
On January 14th, according to TechCrunch, Google's app store in India removed nine trading platforms including Binance, Kraken, HTX, Gate, Bittrex, Bitfinex, etc.<br>Previously, BlockBeats reported that on January 10th, according to CoinDesk, after the Indian government sent compliance instructions to 9 cryptocurrency trading platforms including Binance and KuCoin, Apple removed the applications of these and other offshore cryptocurrency trading platforms from its Indian app store. Although OKX did not receive the notice, its application was also removed from Apple's Indian app store. The 9 trading platforms that were notified include Binance, KuCoin, Huobi, Kraken, Gate.io, Bittrex, Bitstamp, MEXC Global, and Bitfinex.
Indian digital rupee crosses 1 million transactions in a day
The Reserve Bank of India's digital currency, the digital rupee, surpassed 1 million transactions in a single day on December 27, 2023. Shaktikanta Das, the Governor of the Reserve Bank of India (RBI), wrote in a letter to employees on December 29 that the daily usage of the electronic rupee (CBDC) had "surpassed the milestone of 1 million transactions," and a bank participating in the electronic rupee pilot program encouraged its use for employee funds and benefits instead of using existing fiat currencies.
India’s CBDC reaches 1 million daily transactions
In July of last year, Rabi Sankar, the Deputy Governor of the Reserve Bank of India (RBI), set a target for the daily transaction volume of the digital rupee to reach 1 million transactions by 2023. At that time, the transaction volume of the central bank digital currency (CBDC) was only 10,000 per day. Local media reported that the company achieved this milestone on December 27, 2023.
India unlikely to introduce crypto or Web3-specific legislation until mid-2025, says Indian Parliament Member Jayant Sinha
Indian Parliament Member Jayant Sinha has stated that India is unlikely to introduce a crypto- or Web3-specific legislative bill anytime soon, perhaps only by mid-2025. Sinha believes that more time is needed to identify the most impactful applications for India’s economy and financial system. Instead of legislation, India will rely on a series of narrow policy decisions to act as a de facto regulatory framework, one that aligns with forthcoming G20 recommendations. Sinha emphasized the need for caution when dealing with crypto in India and acknowledged the revolutionary potential of the technologies underlying Web3.
Chainalysis: India ranks first in grassroots cryptocurrency adoption
According to Chainalysis' 2023 Global Cryptocurrency Adoption Index, India ranks first in grassroots cryptocurrency adoption. In this index, India ranks higher than other countries with a large amount of Bitcoin trading and mining activity. Additionally, when examining the countries with high estimated cryptocurrency values received from July 2022 to June 2023, India ranks second.
In the past year, India has obtained approximately $250 billion worth of cryptocurrency, second only to the United States, which obtained approximately $1 trillion worth of cryptocurrency during the same period. India ranks first in the overall index, second in the concentrated service value ranking, third in the retail concentrated service value ranking, and fifth in the P2P exchange trading volume ranking. Nigeria, Vietnam, the United States, Ukraine, the Philippines, and Indonesia closely follow India.
