More than any other country, India has experienced a bear market. Numerous factors, including as a bearish global market, the geopolitical environment, and onerous and ambiguous laws in India, were to blame for the losses.
Volumes on cryptocurrency exchanges have dramatically decreased
On June 25, Bloomberg stated that most Indian companies are trying to tread lightly as they get ready for the crypto winter and new interest rates as major players in the cryptocurrency industry lay off personnel. taxation.
Due to new tax laws, trading activity on WazirX, one of India’s exchanges for cryptocurrencies with the quickest growth, has decreased by 95% since October 2017. For any transactions of cryptocurrencies above a particular threshold, a 1 percent tax payable at source will be charged, and the Houses of Parliament are currently discussing the idea of adding a value added tax to the mix.
According to WazirX Vice President Rajagopalan Menon, the past year has been the company’s “golden age,” as they moved from employing six programmers to fifty in just seven months.
India is still dominating Web 3.0.
Finance Minister Nirmala Sitharaman recently recommended a 30 percent tax on all bitcoin gains in her budget address for the fiscal year beginning April 2022 in an effort to legitimate the business, hurting many cryptocurrency traders.
Additionally, the central bank of India, the Reserve Bank of India, is collaborating on a pilot project to use blockchain technology in the battle against fraud alongside other public institutions and foreign businesses like IBM. who prowl the nation’s financial sector. comparable to Operation Hidden Treasure’s efforts to combat tax evasion relating to cryptocurrencies.
In other words, the government is aware that the technology underlying cryptocurrencies might be a useful tool to help it exert greater control over the financial system and deter unlawful behavior, even as it continues to put pressure on cryptocurrency companies. and illegal methods.
The Reserve Bank of India is likewise putting effort into its CBDC initiative, which is intended to “destroy” cryptocurrencies. All of these actions demonstrate India’s unequivocal stance on cryptocurrencies and encourage many businesses to locate their headquarters in more advantageous nations like the Gulf.
India is similarly strict on the NFT business, as evidenced by the fact that an Indian tax official targeted a Bollywood star for selling his NFT collection.
While several cryptocurrency exchanges are leveraging the current bear market to increase their stakes in other industries, like FTX, which is debating buying a share in Blockfi, Indian exchanges are being burdened by ever-tighter regulations.
