Nirmala Sihtaraman suggested a global regulatory framework for the Crypto sector, to fight against bad actors or illegal activities easily.
In India, there is no regulatory framework for the crypto companies but there is a provision of 1% TDS + 30% tax on each crypto transaction profit. In late Jan 2022, the Indian financial ministry was trying to Introduce a Crypto bill but that failed because of some reasons, which are still under the private domain. As per Indian finance minister Nirmala Sitharaman, Indian crypto investors should have patience with future India’s crypto bill.
Recently, in a post-Budget 2023 interview, the Indian finance minister Nirmala Sitharaman said that proper crypto regulation can’t be done by a single country, instead, there is a need for multiple countries’ collaboration to introduce a perfect Crypto regulatory framework.
Earlier this, during the 2023 Budget event, the Finance Ministry introduced a new rule on the Indian Crypto investors, to prohibit tax evasion.
Under the “Crypto TDS penalty” crypto Investors will be subjected to jail punishment for up to 7 years, in case they failed to pay TDS.
Crypto TDS vs Crypto traders
Because of the TDS system on the Crypto transactions, almost all the Indian crypto investors stopped their Crypto trade activities, which can be seen in all the Indian crypto exchanges’ trade volume.
Under the TDS system, all crypto Investors are required to pay 1% of the total amount of crypto funds, as an advance tax. Due to the 1% TDS system, the majority of the crypto traders have been shifted to decentralised crypto trade platforms or left Crypto trading on centralised Crypto exchanges.
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Indian finance minister says Crypto regulation can’t be done by a single country