India to tax cryptocurrencies at 30%
(SOUNDBITE) (Hindi) INDIAN PRIME MINISTER, NARENDRA MODI, SAYING:"Cryptocurrency or Bitcoin."India's government will slap a 30% tax, its highest taxband, on income from cryptocurrencies and other digital assets, like NFTs.(SOUNDBITE) (English) INDIAN FINANCE MINISTER, NIRMALA SITHARAMAN, SAYING: "I propose to provide that any income from transfer of any virtual digital asset shall be taxed at the rate of thirty percent."Though the tax sits in India's highest band, it's not necessarily unwelcome.The move has raised investors' hopes India won't outright ban cryptocurrencies, a move India was considering just a few months ago, and instead that it's sign of official acceptance.It's estimated there are between 15 and 20 million crypto investors in IndiaWhile there's no official data on the size of India's crypto market, industry estimates suggest total crypto holdings sit at around 400 billion rupees - just over $5 billion.However, India's central bank has voiced serious concerns over the financial instability of private cryptocurrencies, saying they lacked the underlying value of even a tulip, in a reference to a speculative bubble that gripped the Netherlands in the 17th Century.After letting off warnings, the central bank announced plans to launch its own digital currency sometime in the 2022-2023 fiscal year.(SOUNDBITE) (English) INDIAN FINANCE MINISTER, NIRMALA SITHARAMAN, SAYING: "A central bank digital currency will give a boost, big boost to digital economy."But the new tax regime could signal a wider acceptance of digital currencies by authorities, and reassure more corporates to enter the market.Nischal Shetty is the CEO of a cryptocurrency trading platform in India.(SOUNDBITE) (Hindi) CHIEF EXECUTIVE OFFICER, WAZIR X CRYPTOCURRENCY TRADING PLATFORM, NISCHAL SHETTY, SAYING:"Everyone had questions about the legitimacy of the cryptocurrency sector and whether the government will ban it. So, now there is clarity that 30 percent tax will be charged. The people will not doubt cryptocurrency and the government will head towards crypto regulation."
