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The new crypto rules have become effective as of April 1st, 2022. Initial announcements made it seem that these rules may not be so bad however, further announcements have not been positive. As of now, the only method we have is to show the government the potential crypto has and prove to them how their new laws are limiting its growth and killing our chance to become a crypto super power. We will continue to build despite the odds.
In this week’s rollup, we look at articles that summarise the applicable rules and look at some effects the rules have already resulted in. We also look at some pro-crypto news from around the world. Enjoy!
India's Crypto Law Will Be Based On Global Consensus
India will frame a legislation for cryptocurrencies only after a global consensus emerges on regulating such assets, according to a person familiar with the matter. The government isn't planning a law soon to either regulate or tighten provisions, the person said, asking not to be identified as the discussions are private. Earlier, a crypto bill had been planned to make the governments stand clear on this matter. However, due to the complexity of crypto transactions, the government has decided on postponing this bill till get an idea of what other nations are doing.
Read more on this, here.
https://www.ndtv.com/business/indias-crypto-law-will-be-based-on-global-consensus-report-2856221
USDT falls sharply on Indian Exchanges On April 1st, at the start of the new financial year, the crypto tax rules became applicable. As per the new rules, losses from one token cannot be set off against gains from another. Due to this, a lot of investors booked maximum profit before the close of the financial year. This resulted in a massive sell off of USDT causing the price to fall drastically on Indian exchanges. Seeing the arbitrage opportunity, traders swooped in to purchase this sold USDT and soon it was back to its original price.
A Refresher on all the Crypto Tax Rules that Became Applicable on April 1st
India’s Finance minister announced a number of new taxes that will become applicable on crypto during the budget session. Since then, the laws have been further clarified and new provisions have been added. There is still a lot of confusion in the industry on how these rules will apply but they only way to really understand them is trial and error. Here is an article outlining all the key laws in 10 brief points to help you navigate what is going to be a difficult year for crypto in India.
https://www.livemint.com/money/personal-finance/this-is-how-cryptocurrency-assets-will-be-taxed-from-april-1-in-india-10-points-11648697948381.html
Ariel India rolls out NFTs to promote household equality