Bad Crypto Regulations Will Cause Innovation Exodus

As declared in Union Budget 2022-23, Indian crypto investors will be required to pay taxes under the new scheme for taxation of virtual digital assets from April 1st.It says it faces the risk of missing out on Web3.0 innovation
Priyanka Chaturvedi, Member of Parliament.

• Chaturvedi during parliamentary proceedings Said The Indian government has imposed high taxes because it did not understand the cryptocurrency industry and Web3.0, its job creation capabilities, and several other aspects, but regulations are still inadequate.
• The Minister supported the creation of a regulatory framework and said:

“We live in the world of Web3.0. You have the choice of biting or dodging bullets.”

• Last week, the Indian House of Representatives, Lok Sabha, passed the long-awaited 2022 fiscal bill.
• High tax rates are a major concern for many beginners and small traders. The bill, proposed by Finance Minister Nirmala Sitharaman, includes a cryptocurrency amendment that seeks to impose a 30% tax on digital assets and NFT transactions, which is equivalent to the tax on gambling and lotteries. I did. During that time, there were no provisions for deductions from transaction losses when calculating income.
• Indian taxpayers will be deducted an additional 1% tax at withholding or TDS.Many experts believe that 1% TDS on each digital asset transfer will eventually deplete the liquidity of crypto exchanges. Cause Bureaucracy.
• The latest comments from Chaturvedi arrive just days after Sushil Kumar Modi, a member of parliament (MP) from the ruling BJP party. Prompted The government will consider raising capital gains taxes on cryptocurrency income.
• He said Bitcoin-earning individuals are not affected by a 30% tax, while their compound annual growth rate (CAGR) is 30% that of Ethereum.