Binance Holding Ltd. CEO Changpeng Zhao shared his views on the situation of crypto in India on a panel at a Fintech Conference in Singapore on Thursday. He says, “India has high taxes, which is going to destroy the business.”
Zhao is referring to the declaration of 30% capital gains tax on all cryptocurrency trading earnings in the Union Budget 2022, by Union Finance Minister Nirmala Sitharaman.
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On top of this tax, the federal government imposed a further 1% tax deducted at source (TDS) on all crypto transactions. According to experts anticipated this decision will significantly affect India’s emerging crypto sector.
Zhao’s comments come as India struggles to regulate the growing cryptocurrency industry, which has attracted attention from both domestic and foreign investors.
The chief executive of Binance has predicted that India’s cryptocurrency economy may collapse owing to hefty taxation, which has garnered widespread support among crypto investors.
Indian Government is showing interest in Blockchain
However, the Indian government has been quite open to blockchain technology. Polygon, a blockchain platform, is headquartered in India as well. Additionally, a test run of the CBDC initiative was initiated in the country.
India’s existing bitcoin regulatory framework is being compared to that of other countries. In addition, India will preside over the Group of Twenty for a full calendar year beginning in December 2022. Indian Finance Minister Nirmala Sitharaman has acknowledged the need to discuss cryptocurrencies.
Crypto frauds were a major topic at a recent Interpol summit in New Delhi. During the New Delhi summit, the international police force revealed the formation of a specialized crypto team.