Charles Hoskinson said India’s Anti-Crypto Attitude Prevents Cardano from Entering the Market
India imposes a 30% flat tax on earnings from virtual digital assets and deducts 1% from each transaction.
Charles Hoskinson said that he would love to join the Indian cryptocurrency business, but the Indian government’s strong anti-crypto attitude is an impediment. This year, the Indian government famously slapped a 30% tax on revenues from virtual digital assets.
In addition to the 30% tax, India’s Central Bank, the Reserve Bank of India, has imposed a shadow ban on cryptocurrencies. It is convinced that cryptocurrency might lead to the “dollarization” of the economy. Coinbase was forced to cease operations in India earlier this year owing to informal pressure from the Reserve Bank of India.
The Union Minister of India, Amit Shah, thinks crypto is to blame for the increase in drug smuggling in India. He is also the governing party’s main strategist and a close assistant to Prime Minister Narendra Modi.
India’s finance minister, Nirmala Sitharaman, intends to highlight crypto regulation at the G20 Summit during her nation’s one-year chairmanship.
“You do not know where the path goes. Is it drug money? Is it fueling terrorism, or is it simply gambling? Therefore, an effective rule cannot be implemented by a single nation. We have not yet developed any plans. Therefore, we need the support of all G20 members in order to choose the most effective course of action.”
According to a study published by the United Nations Conference on Trade and Development (UNCTAD) in June 2022, over 7% of India’s population of 1.4 billion own cryptocurrencies. According to these figures, India is a big market.
The regulatory obstacles and anti-crypto attitude restrict businesses from constructing in India. According to a report by TechCrunch, Changpeng Zhao, the CEO of Binance, does not currently see a viable commercial opportunity in India.
He was critical of the rules, stating: “A user may trade 50 times per day and lose around 70% of their capital. There will be no volume for an exchange based on an order book. Therefore, we do not see a feasible commercial opportunity in India now.”