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

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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 “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”.

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