Cryptocurrencies need regulation, not heavy taxes and prohibitions in India
The bypass system of trading through non-Indian exchanges using foreign currencies makes the process of tax revenue collection more difficult. This is also benefiting the economy of nations where these exchanges are based.
PALO ALTO, Calif. (PRWEB) January 19, 2023
As a nation comprising the largest crypto investor population, India holds considerable sway in determining the outcome of the trending topic of crypto regulation. PayBito chief Raj Chowdhury highlighted the magnitude of potential business opportunities with the proper implementation of crypto regulations, adding that while the nation’s heavy taxation policies may detract newcomers from trading, a notable number of traders are already choosing foreign crypto exchanges.
India has made huge contributions to the ongoing Industrial Revolution 4.0, particularly in the development of Web 3.0, metaverse, blockchain, and acceleration of financial inclusion through digital public services. It is also prominently placed among the top positions in several global crypto-ranking indexes, including crypto adoption and first-time crypto investor population. But, the 30% crypto taxation slab has been detrimental to the growth of the crypto eco-system across India, with several exchanges withdrawing or setting up operations in crypto-friendly countries. In addition, there has been a decline in crypto trade, amounting to Rs. 32,000 crores.
The Paybito CEO, Raj Chowdhury, states, “The bypass system of trading through non-Indian exchanges using foreign currencies makes the process of tax revenue collection more difficult. This is also benefiting the economy of nations where these exchanges are based.”
The Reserve Bank of India is a long-time critic of crypto and has previously addressed its concerns about “losing control” of the Indian economy. The Supreme Court overturned the ban imposed by the nation’s central bank in 2020. Fast-forward to the present, the RBI is once again advocating for an outright ban on cryptocurrencies including Bitcoin and Ether as the Union Budget day comes close, citing the FTX implosion as an example and adding that cryptocurrency has no “underlying whatsoever”.
“Cryptocurrencies have optimized transaction settlements in a way that has been embraced by MNCs, payment processing services, and expatriates sending earnings to their dear ones through remittance” mentioned Chowdhury, who had previously highlighted the need for boosting crypto security measures, and condemned former FTX chief Sam Bankman-Fried for asset mismanagement.
The US-based PayBito exchange is one of the frontrunners of integrated crypto-forex technology. The firm has garnered critical acclaim for the first-of-its-kind crypto broker platform and won top honors in white-label crypto exchange technology development across global research listings. PayBito-designed solutions have been deployed in more than 26 countries including South Korea, Australia, and Sweden.
India will be leveraging its G20 presidency position this year to encourage other nations to develop a consensus-based global crypto regulation framework and prevent crypto money laundering. Thought leaders across the crypto ecosystem have voiced similar sentiments, adding that standardization will instill trust and confidence among newcomers and significantly boost crypto adoption.
About Raj Chowdhury:
Raj Chowdhury is the Managing Director of HashCash Consultants and Paybito. Raj pioneered the first interbank Trade Finance and Remittance implementation of Blockchain Technology between two of the largest global banks. Raj is an eminent voice in the Blockchain and Cryptocurrency space and actively engages with policymakers in this area. He is a contributor to Economic Times, Business World, CNNMoney and advises industry leaders in the adoption of Blockchain. He is a member of Asha Silicon Valley, a nonprofit committed to education for children in emerging countries. Author of the book 'The Dark Secret of the Silicon Valley', Raj is an investor in blockchain and cryptocurrency companies and an active member of the philanthropic community.