Posts from the 'Quoted' Category

‘Backtracking Never A Good Policy,’ Experts Comment As India’s Finance Minister Hints At Banning Cryptos

‘Backtracking Never A Good Policy,’ Experts Comment As India’s Finance Minister Hints At Banning Cryptos

My additional comments:

Stating this upfront is a good strategy. I believe FM Sitaraman is giving a warning to all that if cryptocurrencies become too out of hand, there is a chance to revise the regulations. I do not see this as bad backtracking. If you looked at it from FM’s perspective, if crypto becomes very successfully and they felt that the market is receptive, open and ready for this new digital currency, there might also be other possible incentives that can be introduced. Reducing from 30% to 10% is not backtracking right?

In my opinion, the revision is reasonable and it is an act to protect the India market.  The digital rupee is not an easy task for India. India is a big economy and may need to exercise more control over its currency before adopting it to its fullest scale. Potential security issues can be a problem at the start and I urge experts to look deeper into the direct and indirect costs potentially linked to the implementation so as to allow them to drive innovation to the peak.

 

‘Backtracking Never A Good Policy,’ Experts Comment As India’s Finance Minister Hints At Banning Cryptos

KEY POINTS

  • India might ban cryptos even after taxation
  • India to tax cryptos at 30%
  • Industry seeks clarity on new announcements
  • ‘Backtracking never a good policy’ says expert

Conflicting signals from the Indian government on the legitimacy of cryptocurrency has not gone down well with the industry. International Business Times spoke to several experts to gauge the sunrise sector’s mood and all of them asked for just one thing – clear directions from the top.

The federal budget for the year beginning April seemed to chart out a path when it imposed a 30% tax on cryptocurrencies. A few days later, however, Finance Minister Nirmala Sitharaman said she could still ban the cryptos later. Industry insiders believe that backtracking is not a good policy especially for a big economy like India.

In a recent interview to The Economic Times, Sitharaman said, “Banning or not banning will come subsequently when the consultations give me inputs. But would you say till then I do not even tax the huge profits being transacted? I will. Legitimate or not legitimate is a different question, taxing is completely my prerogative.”

Raj Kapoor, founder of India Blockchain Alliance and Chief Growth Officer at Chainsense, said, “Backtracking is never a good policy and I feel the statement should be viewed as a statement where we have taken a baby step forward but the steps and strides seem miles away.” Kapoor believes that the announcements made in the federal budget about cryptos have a lot of grey areas that needs to be addressed.

“When we say ‘ban’ crypto currencies what exactly do we ban? What are the permissible exemptions? Do we permit crypto currencies to make in platform payments the largest exemption issue? What is the manner you permit purchase of exempted cryptocurrencies for exempted use by sovereign currencies? Questions galore, solutions in the grey,” he told International Business Times.

Shivam Thakral, chief executive officer of Indian exchange BuyUcoin, believes that the finance minister might be referring to a “worst-case scenario like when most (Financial Action Task Force) member-countries decide to ban crypto.”

“There’s also a burgeoning concern among global regulatory watchdogs that crypto can have an adverse impact on economic stability in countries like India. We’re really optimistic that the government of India will address these concerns and bring in a strong regulatory framework to tackle all these issues to become global leaders in crypto & blockchain industry,” Thakral told International Business Times.

On the other hand, Anndy Lian, chairman of BigONE Exchange, believes that stating upfront that the government might ban cryptos later is a “good strategy.”

“I believe FM Sitaraman is giving a warning to all that if cryptocurrencies become too out of hand, there is a chance to revise the regulations. In my opinion, the revision is reasonable and it is an act to protect the Indian market,” Lian told International Business Times.

India has decided to introduce a 30% tax on cryptos and plans to work on a digital rupee backed by blockchain beginning the financial year starting April.

Sumit Gupta, co-founder and CEO of CoinDCX, said “it’s two steps forward and one step back.”

“The quantum of taxation is something that is discouraging.  Also, specific sections regarding TDS are still confusing. This might act as a dampener for greater adoption,” Gupta told International Business Times.

“We must remember this is just the beginning of the larger process of adoption, multiple discussions are needed to come up with better systems or processes. But we are very hopeful that right actions will be taken,” he said.

 

 

Original Source: https://www.ibtimes.com/backtracking-never-good-policy-experts-comment-indias-finance-minister-hints-banning-3391556

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j

Global players flag ‘one size fits all’ approach in FM’s crypto tax

Global players flag ‘one size fits all’ approach in FM’s crypto tax

Additional comments on this article:

The feelings from the global market are positive in general. Now that the parameters are clear and India’s stand on crypto is considerably straightforward. Institution investors are looking forward to making some serious investments in India. In the last 2 days, I have seen new investments by fellow venture capitalists into public blockchain projects, meme coins, incubators and innovation labs. Crypto exchanges and projects are also working around the clock to onboard new users in India too. These are positive signs on the ground too.

Of course, on the other hand, there are users who are complaining non-stop about the tax and putting out statements that crypto should be decentralized, our government should not interfere.

Such wishful thinking would not be fulfilled by the regulators. The rules are in place acts as a form of control and protection for the Indian market. I am certain the users will get used to it and be reasonable about it soon.

– Anndy Lian

________________________________________________

Global players flag ‘one size fits all’ approach in FM’s crypto tax

Synopsis

While this is a positive step towards the adoption of technology for the future, a flat 30 per cent tax without any loss offset is alarming to a lot of investors, said Aliasgar Merchant, Developer Relations Engineer of New York-based Tendermint.

New Delhi: The recent announcement by India’s Finance Minister Nirmala Sitharaman to tax all private virtual assets at a flat rate of 30 per cent although lauded by global players has faced some scepticism regarding the approach.

Sitharaman on Tuesday announced that the taxation will be applicable without any exemption or deduction and the loss arising from the sale of virtual assets cannot be set off against income.

While this is a positive step towards the adoption of technology for the future, a flat 30 per cent tax without any loss offset is alarming to a lot of investors, said Aliasgar Merchant, Developer Relations Engineer of New York-based Tendermint.

Crypto exchanges and other projects are working towards getting Indian users on board after the announcement by FM in Budget 2022. Global crypto players believe that the tax clarity will enable fence-sitters to activate their India investments. Although some have flagged a lack of clarity around the announcement.

Bill Hugues, Senior Counsel & Director of Global Regulatory Matters at ConsenSys said, “The government’s move delays resolution of the issue. All things considered, it is still better than proposing a bad rule. But the chances of a bad rule remain and that is something that should concern anyone who cares about innovation in this space.”

The recognition of cryptocurrency in the Indian budget is definitely a positive step towards the future, believe experts. Many countries are considering crypto regulations, and India is paving a positive path for the industry, they said.

“As India is moving towards being a global superpower, it is imperative that the government starts recognizing and adopting cutting-edge technologies like Blockchain,” said Merchant, adding that the introduction of CBDC is welcome while all eyes are on its timely implementation.

Anndy Lian, Chairman, BigONE Exchange believes that institutional investors are looking towards making investments in India. He is positive about new investments by venture capitalists into public blockchain projects, meme coins, incubators and innovation labs.

There are users and industry players who are critical of the tax move and say that cryptos being decentralized, should not be regulated. Others are sceptical over treating all the virtual assets including tokens, coins, NFTs under one umbrella.

A one size fits all approach would likely fail to address any actual risks and unnecessarily constrain uses that are popular and not a public policy concern, they said.

“There is plenty of reason to believe that sensible regulation of the crypto space will be where we end up,” Hughes added. “But nothing is for certain with respect to regulation in this space, in any part of the world.”

 

Original Source: https://economictimes.indiatimes.com/markets/cryptocurrency/global-players-flag-one-size-fits-all-approach-in-fms-crypto-tax/articleshow/89343655.cms

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j

Global players cheer crypto tax as first step to nod

Global players cheer crypto tax as first step to nod
Additional comments I have for the article on Economic Times.
India’s plan to put a tax of 30% on crypto gains is a big step forward. Their plans to digitalize their currency is another bigger step forward. This means that India recognizes the importance of crypto, digital assets and their underlying technology, blockchain too. They are able to collect more tax from crypto trading and are able to reduce risks of money laundering, terrorist financing and price volatility using their digital dollar in the future.
 
As mentioned in my previous commentaries, I strongly believe India will not put a ban on crypto as it has a big economic impact on them and some of my friends in India were saying that crypto maybe elevates India’s position globally.
I said this openly on my Twitter yesterday and I am going to say this again. “The next crypto bull market could be led by India.” Adding to this optimism, I would also see that the requirements of the regulations for crypto exchange and users will be tightened up in India very soon to align to protect the Indian market.
Anndy Lian

Global players cheer crypto tax as first step to nod

Mumbai: The worldwide crypto community has lauded India’s announcement to tax cryptocurrencies and develop a blockchain-based, regulator-backed digital currency as a significant step forward toward legitimising the asset class and encouraging innovation in blockchain technology.

“This means that India recognises the importance of crypto, digital assets and their underlying technology, blockchain, too,” said Anndy Lian, Chairman of the Singapore-based BigONE exchange. “The next crypto bull market could be led by India.”

On February 1, Finance Minister Nirmala Sitharaman announced the government would impose a blanket tax rate of 30% on the transfer of “virtual digital assets.”

Global crypto players believe the tax clarity will enable fence sitters to activate their India investments.

“The tax clarity is a very positive step forward. The Indian government is taking a progressive stance by going ahead in the direction of innovation. By bringing in taxation, the government legitimises the crypto industry and trading to a large extent,” said Serdar Bisi, CEO of Tycoon, a Cyprus-based crypto startup. “This makes it now possible for institutions and corporations that have been sitting on the sidelines because of uncertainty to participate in this emerging market and industry.”

Adam Mazzaferro, Founder of Australia-based @pay, said people forget that cryptocurrencies are simply another form of asset class, just like shares and real property, and should be treated in the same light, and the Indian government’s announcement has validated the asset class.

“Indian government’s move to tax cryptocurrencies is welcomed as it is consistent with how other modern economies are treating cryptocurrency,” Mazzaferro said. “Although the taxable rate of 30% is relatively high, any form of government regulation of cryptocurrency is encouraging as it goes a long way towards validating the asset and making it more mainstream and widely accepted in everyday business and commerce.”

Kaz Patafta, co-founder of First Eleven Club and Director of McDonald Patafta & Associate Lawyers, an Australian law firm, said the imposition of crypto asset tax now solidifies the adoption of crypto in India and allays concerns of a regulatory ban in one of the largest transactional markets for virtual assets.

Wahid Chammas, a Cyprus-based investor and chairman of Faith Tribe, an open-source fashion design platform that works with many Indian fashion designers, said that these designers will, for once, have a fighting chance to thrive in the highly competitive global marketplace. “But it would be such a shame for the new crypto tax regime to render them uncompetitive with this highly regressive tax,” he said.

Global crypto experts believe the government’s announcement of 1% TDS at the time of transfer of digital assets will be a powerful tool to track transactions.

Pratik Gauri, CEO and Founder, Singapore-based 5ire, said using Tax Deducted at Source (TDS) was a necessary element and, with the increasing awareness of KYC/AML and how shady segments of society often use crypto to launder money, TDS can provide the government with the needed information and money to build an infrastructure for crypto monitoring for tax purposes.

“I do not think that 1% is a prohibitive amount. And it will simultaneously bring needed foreign exchange and investment to India,” he said.

On Tuesday, Changpend Zhao, CEO of Binance, the world’s biggest crypto exchange, said on Twitter, “Crypto is legally recognised in India with a 30 percent tax.”

However, experts say that the recognition of digital assets under income tax is not akin to granting legal status.

According to Charles Tan, Head of Marketing at Coinstore, India is transitioning from an unregulated to a government-monitored crypto market, which will benefit all stakeholders in the industry.

Global crypto exchanges are also keeping a close eye on India’s progress on its CBDC that, according to the budget announcement, will be launched in FY 22-23.

Jay Hao, CEO of OKX.com, said that central banks around the globe have already launched or are about to launch their digital currencies and that India was slightly lagging in the digital currency race, mainly due to the regulatory hurdles and reluctance to accept the growing popularity of digital assets/digital currency around the world. “I hope the announcement made by the Finance Minister regarding CBDC is implemented without any further delay as it will give a much needed push to the blockchain industry in India,” he said.

The announcement, according to Santiago Sabater, Co-founder of DeFiChain Accelerator in Germany, was a step in the right direction, and the security in taxation is the first step for adoption to progress.”If India manages to support crypto startups, create more fair regulations, and enable cooperation with banks, it has the potential to become the world’s leading crypto-hub for web 3.0,” said Sabater.

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j