India to propose a law banning Cryptocurrencies

[bwhhisc]

NEW DELHI/MUMBAI (Reuters) - India will propose a law banning cryptocurrencies, fining anyone trading in the country or even holding such digital assets,
a senior government official told Reuters in a potential blow to millions of investors piling into the red-hot asset class. ( read more at link)

https://www.reuters.com/article/uk-i...-idUSKBN2B60QP

[blackpower]

The Empire Strikes Back...
Governments will prevail in any case.
All this is very, very speculative....

[Steve Clarke]

I think their wanting to release their own CBDC, (Country Based Digital Currency) and set up regulations before they allow the market to fully take off. Regulations will surely happen in India, and almost everywhere else.

[bwhhisc]

Originally Posted by Steve Clarke

I think their wanting to release their own CBDC, (Country Based Digital Currency) and set up regulations before they allow the market to fully take off. Regulations will surely happen in India, and almost everywhere else.

No doubt they want a piece of the pie, and i am sure they (and all governments) are looking to protect any sales taxes revenue.
Digital currencies will cut into the credit card fees and wire transfer fees that banks and credit card providers currently enjoy as well.

[techguy]

Originally Posted by bwhhisc

No doubt they want a piece of the pie, and i am sure they (and all governments) are looking to protect any sales taxes revenue.
Digital currencies will cut into the credit card fees and wire transfer fees that banks and credit card providers currently enjoy as well.

Officials are confident of getting the bill enacted into law as Prime Minister Modi’s government holds a comfortable majority in parliament. If the ban becomes law, India would be the first major economy to make holding cryptocurrency illegal. Even China, which has banned mining and trading, does not penalize possession.



In India, despite government threats of a ban, transaction volumes are swelling and 8 million investors now hold more than 100 billion rupees (~$1.5 billion) in crypto-investments, according to industry estimates.


Previously they passed a bill to legalize bitcoins. According to that bill, if you hold the bitcoins for less than three years, the gains are called short-term capital gains. The gains would be clubbed with taxable income and you are taxed as per your income tax bracket. If you hold the bitcoins for three years or more, the gains are long-term capital gains. You have to pay long-term capital gains tax at 20% apart from your income tax bracket, with the benefit of indexation.