India's confusing crypto bill

[Slow death]

Can they tax something which is not legal?

man I confess that I'm shocked by this news, I didn't know it was possible to pay tax for something illegal, how could that be possible?

How can a country tax something which is not legal?

they are becoming a joke with these attitudes, why don't they decide right away what they want? if they don't like bitcoin just put laws that guarantee people won't use bitcoin to commit crimes and let people choose whether or not they want to use bitcoin, they look like dictation governments disguised as democratic

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[Dunamisx]

Can they tax something which is not legal? How can a country tax something which is not legal? Moreover they still have plans of banning crypto since they are not clear about their stands on legalization.

They didn't allow their financial system engage yet in cryptocurrency although the Reserve Bank of India tends to push forward for crypto ban but unsuccessful, the main idea is that india never declare bitcoin a ledger tender and their citizens were not ban from engaging in the use of cryptocurrency, the mastery they only exhibit is over the 30% tax imposition. I also believe after several years of thorough observations on bitcoin and still found outstanding with a maintained standard, possibly their iota of doubt could have been clarified in accepting bitcoin as a legal tender.

[Digitalbitcoin]

Recently India has passed a crypto bill to tax crypto income by 30% but at the same time claiming that taxing cryptos doesn't make them legal and states it's country's sovereign right to tax crypto and this atrocity doesn't stop here as they have mentioned that the decision about banning crypto or legalizing it will taken after further consultation.

Can they tax something which is not legal? How can a country tax something which is not legal? Moreover they still have plans of banning crypto since they are not clear about their stands on legalization. Not sure if it's an attempt to unofficially break the crypto market in India or what's going on.

Share your thoughts on this.

Source: https://www.businessinsider.in/cryptocurrency/news/taxing-cryptocurrencies-does-not-give-them-legal-status-clarifies-indias-finance-minister/articleshow/89500097.cms

Yes, they have always been taxing what is not legal. Gambling they tax heavily and gambling is not legal within the territory of India but yet from the very start gambling income is taxed heavily in the country. Even though I don't agree with this sort of draconian law on crypto but still 30% tax is still bearable. What is not at all bearable is the hefty 1% TDS that will be levied on sale proceeds every time you will make a sale. This doesn't make any sense and is irrational and is a deliberate technique to stop crypto trading in India. What I see from here is that they might in the coming months ban the foreign exchanges altogether and then eventually ban cryptos. They think this way they might get rid of it in phased manner.

Bit different view,

As in India Wazirx, BitBNS, CoinDCX, Zebpay, and a few more offer crypto exchange services, where users can only exchange cryptocurrencies, except that no government can know how much crypto asset you hold.

All of the above exchanges are members of IAMAI (Internet And Mobile Association of India), along with this Binance is also a member of IAMAI. So, banning is not possible, in a legal manner. so taxation of the exchanged asset against fiat is charged by 30%.

At a certain level, exchanges have always been with the government for legal interaction. But to date, everything is going well as it's all about KYC and AML.

But crypto and blockchain are revolutionary and innovative concepts taking the world to a new height. The government also still testing its possibilities. But surely it will take much time to adjust to the global economy. As in the crypto market, many innovative things are happening which are solely based on cryptocurrencies, blockchain including AI and ML technologies.

So the future is completely innovative but at the same time, it will be much more costly.

[teosanru]

Recently India has passed a crypto bill to tax crypto income by 30% but at the same time claiming that taxing cryptos doesn't make them legal and states it's country's sovereign right to tax crypto and this atrocity doesn't stop here as they have mentioned that the decision about banning crypto or legalizing it will taken after further consultation.

Can they tax something which is not legal? How can a country tax something which is not legal? Moreover they still have plans of banning crypto since they are not clear about their stands on legalization. Not sure if it's an attempt to unofficially break the crypto market in India or what's going on.

Share your thoughts on this.

Source: https://www.businessinsider.in/cryptocurrency/news/taxing-cryptocurrencies-does-not-give-them-legal-status-clarifies-indias-finance-minister/articleshow/89500097.cms

Yes, they have always been taxing what is not legal. Gambling they tax heavily and gambling is not legal within the territory of India but yet from the very start gambling income is taxed heavily in the country. Even though I don't agree with this sort of draconian law on crypto but still 30% tax is still bearable. What is not at all bearable is the hefty 1% TDS that will be levied on sale proceeds every time you will make a sale. This doesn't make any sense and is irrational and is a deliberate technique to stop crypto trading in India. What I see from here is that they might in the coming months ban the foreign exchanges altogether and then eventually ban cryptos. They think this way they might get rid of it in phased manner.

Bit different view,

As in India Wazirx, BitBNS, CoinDCX, Zebpay, and a few more offer crypto exchange services, where users can only exchange cryptocurrencies, except that no government can know how much crypto asset you hold.

All of the above exchanges are members of IAMAI (Internet And Mobile Association of India), along with this Binance is also a member of IAMAI. So, banning is not possible, in a legal manner. so taxation of the exchanged asset against fiat is charged by 30%.

At a certain level, exchanges have always been with the government for legal interaction. But to date, everything is going well as it's all about KYC and AML.

But crypto and blockchain are revolutionary and innovative concepts taking the world to a new height. The government also still testing its possibilities. But surely it will take much time to adjust to the global economy. As in the crypto market, many innovative things are happening which are solely based on cryptocurrencies, blockchain including AI and ML technologies.

So the future is completely innovative but at the same time, it will be much more costly.

Banning is not possible in a legal manner? How do you say that? What is legal or illegal is decided by the parliament itself and if it wants to declare something illegal it definitely can. Nothing can really stop that unless you are violating the constitution itself which too anyways can be ammended. I think you didn't get my point. My point was if government is going to levy TDS on every crypto transaction they are indirectly making trading futile exercise hence banning bitcoin in an indirect way.

[stompix]

Bit different view,

As in India Wazirx, BitBNS, CoinDCX, Zebpay, and a few more offer crypto exchange services, where users can only exchange cryptocurrencies, except that no government can know how much crypto asset you hold.

All of the above exchanges are members of IAMAI (Internet And Mobile Association of India), along with this Binance is also a member of IAMAI. So, banning is not possible, in a legal manner. so taxation of the exchanged asset against fiat is charged by 30%.

So what?
We had a whaling association that didn't stop states from banning whaling at all. Let's forget whales or lead paint or how farmed salmon or kinder eggs are banned in some countries, there is an incoming ban on diesel cars, and if those manufacturers are not part of most associations out there I don't know who does.
If they want to ban something that much they can issue a law have it voted and if it passes goodby all of them wazrix, bitbns, and so on, that association will drop them from its ranks and that's it.

If a moronic government decided it's time to make another stupid move that's it,  vote somebody else next time.
We had a Chinese Blockchain Association , did it help?

But crypto and blockchain are revolutionary and innovative concepts taking the world to a new height.

Care to show me one revolutionary example of a blockchain application that has taken the world to a new height?
Legit working already put in place accessible to the population, not pipedream no Ico no empty promises project?
There are tons of projects, maybe 1% of them would qualify for the above but I can hardly find one that could claim it had such impact.

Can they tax something which is not legal?

man I confess that I'm shocked by this news, I didn't know it was possible to pay tax for something illegal, how could that be possible?

Not giving it legal status doesn't mean it is illegal, for example, Bitcoin is not legal tender nor a currency by English law, yet it is not deemed illegal, right now India is in the same situation as most of the world and hopefully, it will get better, not worse.

[Digitalbitcoin]

Banning is not possible in a legal manner? How do you say that? What is legal or illegal is decided by the parliament itself and if it wants to declare something illegal it definitely can. Nothing can really stop that unless you are violating the constitution itself which too anyways can be ammended. I think you didn't get my point. My point was if government is going to levy TDS on every crypto transaction they are indirectly making trading futile exercise hence banning bitcoin in an indirect way.

My views are on the government's role. As laws are made or changed in parliament only. So considering the government's stance on crypto, they have no proposal for legalization. But at the same time government knows how big volume assets are involved in crypto.

Many countries including India, have no control over Bitcoins production, no control over Bitcoins distribution, even no control over Bitcoins Price fluctuation, still countries like India trying to bring it under taxation. What to say?

Already there are other ways to reduce taxes on crypto. But according to laws for fiat, persons have to pay taxes accordingly.

Care to show me one revolutionary example of a blockchain application that has taken the world to a new height?
Legit working already put in place accessible to the population, not pipedream no Ico no empty promises project?
There are tons of projects, maybe 1% of them would qualify for the above but I can hardly find one that could claim it had such impact.

Exchanging Fiat against Cryptocurrencies on exchangers is booming nowadays. Every exchanger is a working example of a blockchain-based application, but they are still centralized. So, in addition to it, Dex and Defi are the new trends in the crypto industry.

[stompix]

~

Exchanging Fiat against Cryptocurrencies on exchangers is booming nowadays. Every exchanger is a working example of a blockchain-based application, but they are still centralized. So, in addition to it, Dex and Defi are the new trends in the crypto industry.

Please tell me you don't actually believe Binance or Coinbse runs their exchange on a blockchain or that their trade engine is something blockchain-related?
I asked you for one real-life already functional blockchain application that uses blockchain technology that can actually be claimed has propelled the world of technology to new heights! There have been numerous tries but still, there is no serious breakthrough, every major company is just saying it's exploring, it's looking into it test implemented and then in most cases there is nothing.

There is only one world application of blockchain technology that has actually proven to be overall useful and adopted, and that is Bitcoin! The original and nothing else. The rest of the projects that have been completed to date have proven nothing, absolutely nothing on a large scale. While Defi was indeed promising on paper and there are user case situations where it would theoretically make sense there is nothing about it to claim it could drive the entire world in a new direction.

[ven7net]

Recently India has passed a crypto bill to tax crypto income by 30% but at the same time claiming that taxing cryptos doesn't make them legal and states it's country's sovereign right to tax crypto and this atrocity doesn't stop here as they have mentioned that the decision about banning crypto or legalizing it will taken after further consultation.

Can they tax something which is not legal? How can a country tax something which is not legal? Moreover they still have plans of banning crypto since they are not clear about their stands on legalization. Not sure if it's an attempt to unofficially break the crypto market in India or what's going on.

Share your thoughts on this.

Source: https://www.businessinsider.in/cryptocurrency/news/taxing-cryptocurrencies-does-not-give-them-legal-status-clarifies-indias-finance-minister/articleshow/89500097.cms

Personally, I think that at the moment this is just talk about the future of cryptocurrencies in India, in principle, as elsewhere. You can see the information about recognition, then about the collection of taxes, but where is the guarantee that this is official information from the Indian authorities? And there are no guarantees, there are only news of which there are now a lot and very often each news contradicts the other. Based on this, I can assume that at this stage we are just talking. As for real cases, there should be clearly adopted laws on this matter, as you correctly noted, first on recognition, and only then on taxes, and so on.

[Digitalbitcoin]

There is only one world application of blockchain technology that has actually proven to be overall useful and adopted, and that is Bitcoin! The original and nothing else. The rest of the projects that have been completed to date have proven nothing, absolutely nothing on a large scale. While Defi was indeed promising on paper and there are user case situations where it would theoretically make sense there is nothing about it to claim it could drive the entire world in a new direction.

To date, there is no working example of the implementation of blockchain technology, but many industries are testing possibilities for better accountability, services, and transparency.

Crypto and blockchain technologies are a bit more complex to understand. Bitcoin is the first successful application ever used in the world using blockchain technology, but we should not have to ignore Ethereum and its forks.

As the post is about the crypto bills in India, it's very hard for the government to keep watch on every transaction, so the government trying to make a blanket rule by charging a 30% tax on crypto trading against fiat. but it is completely unfair considering bitcoins current status under regulation and legal conditions.

[Cookdata]

man, I confess that I'm shocked by this news, I didn't know it was possible to pay tax for something illegal, how could that be possible?

The whole state of India is confused, the country is divided because the stakeholders are having different clique, half want it to be legalized and the other part wants it to be banned, they both are pushing to pass/deny the bill for bitcoin freedom that's why we are seeing different headlines about bitcoin ban and taxes from India.

they are becoming a joke with these attitudes, why don't they decide right away what they want? if they don't like bitcoin just put laws that guarantee people won't use bitcoin to commit crimes and let people choose whether or not they want to use bitcoin, they look like dictation governments disguised as democratic

Have you read the 2022 report of crypto crime analysis? you can find everything from Chainanalysis^[1], You will come to the conclusion that India is just a minor in Bitcoin crimes. The money the government has been printing has its bad side too, they should allow people to do whatever they want it freedom(bitcoin).

[1] https://go.chainalysis.com/rs/503-FAP-074/images/Crypto-Crime-Report-2022.pdf

[7788bitcoin]

~
they are becoming a joke with these attitudes, why don't they decide right away what they want? if they don't like bitcoin just put laws that guarantee people won't use bitcoin to commit crimes and let people choose whether or not they want to use bitcoin, they look like dictation governments disguised as democratic

If coming up with a decision when majority of the first world countries are yet to take a decision on how they are going to handle the cryptocurrency situation is not that easy like you think. Right now what they have done is they are including cryptocurrency trading in a tax bracket and even if the tax percentage is high it sends a signal that they are not going to ban anytime soon.

[Gyfts]

It's so funny when these guys get this confused on what step to take. This si so out of place on there side, abnormal or illegal taxing of cryptos. I'm having a thought here and

1. Its either they are test run how possible it would be to tax crypto facilities and crypto earners. In a way, they could see how much that could be generated from this activity or
2. They raised the quota so high so as to discourage those engaged in any crypto related activities.

In anyway, even if I am wrong, they are greatly confused with there stands, calling it illegal and yet taxing  it. If you ask me, that's what bribery feels like.

They already know what number of taxes would discourage crypto use, every country does.

ie - A tax on stock trading at 30 percent, hypothetically, would objectively be lower than a crypto tax that the government decides to be at 50 percent. You are paying more in taxes on crypto gains than you are on stock gains in relative percentages, so the incentive is for investors to dump their funds off of crypto instead of trying to game the market and make more off crypto to offset the taxes. I've long said the way government can feasibly ban Bitcoin is by taxing it to pieces and forcing people to not want to invest or use it as a day-to-day currency. Most businsses already pay too much in taxes, they have no reason to further take on a tax burden that might be associated with Bitcoin use.

[iamsheikhadil]

It's very confusing indeed, the finance minister am sure doesn't know or bother to know anything about crypto, they have no clue and just shooting arrows in the dark I guess? The tax thing is confusing, never really bothered to check and research about what and how the tax will be applied to, but this duality approach that "it's something we discourage" and "we will take cash from your profits" is really a very big hypocrisy, I guess they have taken this matter because there was a pending need to talk about crypto in parliament for a long time I think they will just leave it again without saying any further till next time