The position of the Indian government to crypto-currencies continues to be divided. Now a new tax threatens the law that many crypto exchanges could set them off.
The Indian government is considering according to Media report the Times Of India a draft law that imposed a tax of 18 percent on Bitcoin transactions. With a transaction volume of annually the equivalent of 5.5 billion dollars to the Indian Treasury would flush a Million dollars in its own coffers. The CEIB (Central Economic Intelligence Bureau), a section of the Ministry of Finance, has submitted the proposal to the Central Board of Indirect Taxes & Customs (CBIC). The CEIB acts in India as a Think Tank of the Ministry of Finance. It has already carried out a study on the collection of the Goods and services tax (GST) on crypto – currencies.
Bitcoin-record travel: So easy, you can invest!
6 Bitcoin securities in the usual Depot include
Learn more in the leading magazine for the Blockchain and the digital currencies
(Print and Digital)
☑ 1. Edition free
☑ Every month, over 70 pages of crypto-Insights
☑ No investment opportunities more miss
☑ Free postage directly to your home
The Crypto-Compass Magazine
The report mentioned that the CEIB has called on the Indian government, Bitcoin as an intangible asset to be recognised. So, in fact, would be given the green light to impose a GST tax on all Bitcoin transactions in the country. Really surprisingly, the push is not coming. For some time there is a concern by the authorities due to the lack of regulations regarding crypto currencies. The use of Bitcoin for illicit activities such as money laundering and betting came into focus.
Bitcoin Trading in India allowed since March
The unregulated crypto-exchanges, and their trading outbound challenges are greater, after the Supreme court of India a two-year ban by the Indian Central Bank RBI repealed. Since then, it is allowed for banks and financial institutions to trade with digital currencies. Immediately after the lifting of the ban, the transaction numbers rose rapidly in the amount.
The government in India was noticed previously by a very hard-line stance against crypto-currencies. Like BTC-ECHO reported in August of this year, considered the government to ban the trading of Bitcoin & co. fully. How practical this approach is, in the end, remains questionable. Finally, India is the third largest economy in Asia, with one of the highest growth rates in international comparison. The need for action in terms of regulation, however it was noted in many cases of.
The taxation of Trading as a GST would mean for many crypto exchanges in India, the how Bitcoin-exchanges-in-chief Praveen Kumar Vijaayakumar in an open letter the RBI explained. As long as the RBI does not create clear rules, get the crypto stock exchanges of your lenders, not the financial services they needed. It should be clear that the announced taxation of 18 percent, bringing the clarity that the crypto exchanges want so badly.