coinedition.com
During a panel discussion at a fintech conference in Singapore on Thursday, the CEO of Binance Holding Ltd Changpeng Zhao, made live-streamed remarks, stating, “India has high tax, which is going to kill the industry.”
Zhao refers to the country’s 30% capital gains tax, which Union finance minister Nirmala Sitharaman announced at the release of the Union Budget 2022, which is levied on any profits from crypto exchanges.
The central government enforced an additional 1% tax deducted at source (TDS) on all crypto transactions on top of this tax, which analysts predicted at the time would have a considerable negative impact on India’s developing crypto market.
Zhao’s remarks come as India grapples with regulating the rapidly expanding crypto sector, which has seen a surge in interest from local and international investors alike.
The crypto community believes that the CEO of Binance could be correct in predicting that India’s cryptocurrency market may collapse due to excessive taxes.
On the other hand, the country has welcomed blockchain technology. One of the biggest and most well-known blockchains, Polygon, is also situated in India. The nation also launched the CBDC project’s pilot program.
India is currently looking at other nations’ cryptocurrency regulatory frameworks as well.
Additionally, starting in December 2022, India will preside over the G20 countries for a year. Nirmala Sitharaman, the finance minister of India, has stated that cryptocurrencies are a topic that needs to be addressed.
At a recent Interpol meeting in New Delhi, crypto scams were extensively discussed. The international police force announced the establishment of a new crypto-focused squad at the New Delhi assembly.