Just-In: India Takes Cautious Approach Towards Crypto After FTX Crisis

India’s Finance Minister Nirmala Sitharaman tables the Economic Survey 2022-2023 in the Parliament today. While the crypto community in India hopes for relief in crypto taxes, the Indian government is unlikely to change its strict stance against crypto, especially following the collapse of crypto exchange FTX. In fact, India is likely to push for a global common standard for regulating the crypto ecosystem.
India Reaffirms Strict Stance Against Crypto in Economic Survey
Indian Finance Minister Nirmala Sitharaman has retained her strict stance against crypto. Last year, Sitharaman introduced the Finance Act 2022 which imposed a 30% tax on profits and a 1% tax deducted at source (TDS). This caused a massive decline in crypto trading volumes in India despite an increase in crypto adoption.
The Economic Survey 2022–2023 highlights how the recent collapse of the crypto exchange FTX and selloff in the crypto market raises concerns over the vulnerabilities in the market. It also cited the joint statement by the Federal Reserve, Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC) highlighting concerns about the risks to the banking system.
Considering the crypto market has no boundaries, the Indian government looks for a global approach to regulate crypto. FTX contagion still impacts the market with crypto companies including Genesis, DCG, and Gemini at risk of bankruptcy. Genesis Trading’s lending business Genesis Capital filed for bankruptcy this month.
Also Read: India Bullish On Crypto Regulation With Latest Economic Survey?
Tax Relief for Crypto Community
While the Indian crypto community hopes the Indian government reduces the tax burden and TDS to 0.1%, the government may have other plans. Former Finance secretary of India Subhash Chandra Garg says “crypto taxes need a lot more clarity and he might not see any new changes in the upcoming budget 2023.”
India-based crypto exchanges such as CoinDCX and WazirX have released proof-of-reserves (PoR), showing transparency and building a strong foundation on the pillars of trust, safety, and security. However, the cautious approach by India after FTX will impact the crypto community in India.
Also Read: Terra Classic Community Burns 210 Million LUNC Tokens In January
- LBank Signs Sponsorship Deal with Argentine National Team, Launches $100M Bonus
- ASTER Leads Perp DEX Volumes Despite $4.8M Wintermute Transfers
- USDH Launch Boosts Hyperliquid Amid Competitive Market Pressure
- SEC to Decide on Six Spot XRP ETF Applications in October
- Ripple Partners with Ondo Finance to Tokenize U.S. Treasuries on XRPL
- Pepe Coin Price Bounce Likely as Support Zone Aligns With Rising Social Activity
- Solana Price Set for Recovery Amid Wyckoff Accumulation and Canary Capital ETF Filing
- Avalanche Price Could Surge to $50 as Transactions Jump 200%
- CHMPZ Price Prediction:Will This Net-Zero Community Token be the Next Gem?
- Ethereum (ETH) Price Set for a rebound as Whales Accumulate $1.6B ETH and Outflows Hit $622M
- HYPE Price Prediction As Bitwise Files For Hyperliquid ETF – Is $55 In Sight?