India’s Finance Minister Nirmala Sitharaman tables the Economic Survey 2022-2023 in Parliament. While the crypto community in India hopes for relief in crypto taxes, the Indian government is unlikely to change its strict stance against crypto, especially following the collapse of the crypto exchange FTX. In fact, India is likely to push for a global common standard for regulating the crypto ecosystem.
Indian Finance Minister Nirmala Sitharaman has retained her strict stance against crypto. Last year, Sitharaman introduced the Finance Act 2022 which imposed a 30% tax on profits and a 1% tax deducted at source (TDS). This caused a massive decline in crypto trading volumes in India despite an increase in crypto adoption.
The Economic Survey 2022–2023 highlights how the recent collapse of the crypto exchange FTX and selloff in the crypto market raises concerns over the vulnerabilities in the market. It also cited the joint statement by the Federal Reserve, Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC) highlighting concerns about the risks to the banking system.
Considering the crypto market has no boundaries, the Indian government looks for a global approach to regulate crypto. FTX contagion still impacts the market with crypto companies including Genesis, DCG, and Gemini at risk of bankruptcy. Genesis Trading’s lending business Genesis Capital filed for bankruptcy this month.
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