Indian government’s ‘blockchain not crypto’ stance highlights lack of understanding
India’s “blockchain, not crypto” stance has led to disastrous crypto policies, forcing several thriving crypto firms to relocate.
Indian crypto businesses are struggling with the new tax policies as trading volumes have dried up and many established crypto firms are looking to relocate to more crypto-friendly jurisdictions.
While many developed countries and even several of its Asian counterparts are actively studying and formulating better crypto regulations, the Indian government has maintained a “blockchain, not crypto” stance.
It might seem like the government is taking a cautionary step to focus on the underlying technology while keeping its distance from the volatile and risky crypto market. However, going by the recent policies and statements from the finance minister as well as sitting parliamentarians, the issue seems to be more of a lack of understanding.
The newly introduced crypto tax laws, for example, are highly motivated by the country’s gambling laws and were introduced and passed hurriedly without any input from the stakeholders in the ecosystem. As many crypto pundits have warned, the harsh tax policy has driven traders away from Indian exchanges.