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Crypto tax is going to become a reality in India soon. While it comes with a host of challenges, it has also lead to the growth of the industry. The effort to improve the law is on-going as industry experts continue to have dialogues with the government. In today’s rollup we look at some landmark regulatory developments from around the world. Enjoy!
30% tax on income from cryptocurrencies to be applicable from April 1, TDS from July 1
The proposed 30% tax on income from cryptocurrencies and other virtual assets will come into effect from April 1 as per Central Board of Direct Taxes chairman JB Mohapatra. In addition, the 1% TDS on transactions in such asset classes will be applicable from July 1, Mohapatra said. As explained by us in an earlier newsletter, tax will only be applicable on gains made and not the amount invested. However, losses cannot be adjusted against income from other sources and no tax relief will be given.
Read more on this, here.
https://timesofindia.indiatimes.com/business/cryptocurrency/bitcoin/30-tax-on-income-from-crytocurrencies-to-be-applicable-from-april-1-tds-from-july-1-cbdt-chief/articleshow/90295072.cms
Crypto Tax Turned Out to be a Blessing for India’s Leading Exchanges Like WazirX
India’s decision to impose a 30% tax on profits from crypto currency trading is turning out to be beneficial for crypto exchanges. Binance owned WazirX saw an increase of 30% in daily sign-ups and its rival CoinSwitch saw an increase of almost 35%. While an increase in investors after introducing a high tax might be counterintuitive, the regulatory clarity brought through this announcement has calmed the doubts of investors and the fear that their assets might get confiscated.
https://www.livemint.com/market/cryptocurrency/indias-crypto-tax-turned-out-to-be-a-blessing-for-leading-exchanges-like-wazirx-11645090280257.html
President Biden of March 9th, 2022 signed the Executive Order on Ensuring Responsible Development of Digital Assets. The order aims to target a number of issues within the crypto space, including consumer protection, illicit finance, financial inclusion, and "responsible development.” Crucially, today’s executive order does not itself introduce new regulations or provide regulatory agencies with the administration’s position on what regulations, specifically, they ought to adopt. Rather, the order asks for federal agencies, such as the Federal Trade Commission, the SEC, and the CFTC, to coordinate their efforts with respect to their oversight of the crypto industry. Many industry leaders compared the order to a regulatory opportunity.
Read more on why crypto markets boomed post this announcement, here.