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Edging: India has edged closer to embracing cryptocurrencies just months after it was widely reported the country was on the brink of following China in issuing a blanket crypto ban. India's finance minister Nirmala Sitharaman announced a 30% tax on any income from the transfer of virtual digital assets, speaking during a speech that laid out the government's budget for the coming year. The move puts earnings from cryptocurrencies and non-fungible tokens (NFTs) in India's highest tax band.
Major market: While there is no official data is available on the size of the Indian crypto market, industry estimates suggest there are between 15 million and 20 million crypto investors in India, with total crypto holdings of around 400 billion rupees ($5.37 billion).
Imperative: "There has been a phenomenal increase in transaction in virtual digital assets," Sitharaman said, it was reported by Coindesk. "The magnitude and frequency of these transactions have made it imperative to provide for a specific tax regime."
Meanwhile... Sitharaman also announced a digital rupee will most likely be issued during the coming 2022-2023 fiscal year, the first time the Indian government has given a timeline on the launch of a central bank digital currency (CBDC), and claiming the launch of a digital rupee will usher in cheaper, more efficient currency management.
Overall win: "India is legalizing crypto-assets," tech investor and former Coinbase chief technology officer Balaji Srinivasan posted to Twitter. "There's significant fine print, especially around tax, but overall this is a win."
More reaction: The move, which takes "concern of a ban off the table," Darshan Bathija, chief executive of Singapore-based crypto exchange Vauld told Bloomberg, has been warmly welcomed by companies that have been expanding into the country despite the looming threat of a strict crypto ban. "Thirty percent tax on income from virtual digital assets, while high, is a positive step as it legitimizes crypto and hints at an optimistic sentiment towards further acceptance of crypto and NFTs," said Avinash Shekhar, chief executive of crypto exchange ZebPay, told Reuters.
Now read this: SEC Objects To MicroStrategy Accurately Valuing Its Billion-Dollar Bitcoin Stash
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