Originally published on: August 07, 2024
The Indian government recently confirmed that it currently has no immediate plans to regulate the buying and selling of cryptocurrencies, despite its efforts to crack down on money laundering and terrorism financing in the crypto sector.
In response to queries during a parliamentary session on Aug. 5, Pankaj Chaudhary, the Minister of State in India’s Ministry of Finance, shed light on the country’s position on crypto regulations. Surprisingly, Chaudhary shared that India has yet to conduct any in-depth studies to gauge the level of cryptocurrency adoption among its populace.
While India implemented a tax system for crypto transactions and profits on April 1, 2022, Chaudhary emphasized that there are no immediate plans to regulate the transactions involving cryptocurrencies. According to Indian law, citizens are obligated to pay a 30% tax on their unrealized crypto gains and a 1% tax deduction at the source (TDS).
Despite the strict tax regulations, India remains focused on combatting Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) activities within the crypto realm. Earlier this year, India banned several offshore crypto exchanges, including big names like Binance, KuCoin, Bitget, and others, for failing to comply with local regulations.
However, Chaudhary reiterated that India does not intend to impose regulations on crypto sales and purchases, highlighting the government’s proactive role in advocating for global collaboration among G20 nations to tackle the misuse of cryptocurrencies.
In a recent development, Binance’s attempt to reenter the Indian market following a hefty fine hit a snag. The Directorate General of Goods and Service Tax Intelligence (DGGI) demanded a substantial sum of 722 crore Indian rupees ($86 million) in unpaid taxes from Binance.
Despite receiving email notifications from Indian authorities, Binance initially disregarded the tax demands. Nevertheless, the crypto exchange later appointed local representation to address its tax obligations.
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