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India continues to think over its stance on crypto causing a lot of talent to leave the country looking for better opportunities. We have a once in a lifetime opportunity to become leaders of an upcoming technology and we hope that the government sees this. In today’s rollup we bring you stories about the progress of regulation in India and around the world. Enjoy!
Crypto Brain Drain Is "Absolutely Crazy" In India, Says Polygon Co-Founder
India's dithering on whether to embrace digital assets is causing thousands of developers, investors and entrepreneurs to leave for places with more friendly regulation, according to the co-founder of the country's most famous crypto startup. “The brain drain is absolutely crazy,” Sandeep Nailwal, whose Polygon operates the biggest so-called Layer 2 protocol for the Ethereum blockchain system, said in an interview from Dubai.
On Tuesday, Finance Minister Nirmala Sitharaman said the government has yet to make a final call on whether to ban virtual coins or regulate them. At the same time, she acknowledged the industry's potential as a source of tax income: “Many Indians have seen a future in it, therefore I see a possibility for revenue in it,” she said. India has an opportunity to become a global crypto powerhouse if suitable laws are implemented. Let’s hope the government takes the right decision
Read more on this, here.
https://www.ndtv.com/business/crypto-brain-drain-is-absolutely-crazy-in-india-says-polygon-co-founder-2816532
Indian Govt to state stance on crypto after consultations
The government will state its position on cryptocurrencies after completing the ongoing consultation process, finance minister Nirmala Sitharaman said. "The consultations are on, you are welcome to participate in it. After the consultation process gets duly completed, the ministry would sit and probably mull over it, which is required because we need the executive to be sure that they are not crossing any legal requirements. After which we will come out saying what’s our position on it," Sitharaman said. This answer was in response to a question raised by the founder of CoinSwitch Kuber. The question looked for clarification on whether crypto will be regulated or banned.
Read more on this, here.
https://www.moneycontrol.com/news/business/cryptocurrency/govt-to-state-stance-on-crypto-after-consultations-fm-nirmala-sitharaman-8206421.html
1% TDS on Cryptocurrency Trading: This Calculation Shows Govt May Lose Millions in Crypto Tax Revenue
According to WazirX founder Nischal Shetty, 1% TDS on crypto trading will result in huge loss of tax revenue for the Government. Sharing a calculation in support of his claim, Shetty said in a series of tweets, “Crypto assets of Indians would be around $3B If we assume a net profit of 10% overall, total profit for Indians would be $300M. At 30%, that’s $100M payable income tax. Which means, Indian Gov would need to refund $900M in TDS each year. But, By locking this $900M, the Gov would cripple traders and prevent them from trading due to lack of capital. Effectively, this would drastically reduce the potential to earn profit. This in turn would affect the $100M in income tax earnings of the government.”
“So, By bringing a 1% TDS: 1. Trading volume goes low. 2. Trading profits go down. 3. Large number of TDS refunds need to be processed. 4. Massive income tax loss to the Gov,” he added. The 30% tax on crypto gains has not received a lot of opposition by the crypto industry however, the 1% TDS has led to a lot of heartache as this will directly affect trading volumes.