Narendra Modi Sworn in for Third Term with Coalition Allies
Narendra Modi was inaugurated as India’s Prime Minister for the third term on Sunday, accompanied by coalition allies. Among his key appointments, Nirmala Sitharaman has been reappointed as the finance minister, a decision that has sparked mixed reactions from the nation’s crypto community.
Sitharaman on International Cooperation in Crypto Policies
Nirmala Sitharaman stressed the significance of international cooperation in formulating crypto policies, while also noting that cryptocurrencies cannot function as traditional currencies.
India’s Efforts in Framing a Crypto Policy
Last year, under India’s G20 presidency, the government prioritized creating a global consensus on crypto policy. Additionally, PM Modi emphasized the necessity for a global framework on cryptocurrencies during the B20 Summit India 2023.
Controversial Crypto Taxation in India
India imposed a 30% tax and 1% TDS on crypto gains, which has dampened hopes for a crypto-friendly environment. However, Saravanan Pandian, Founder and CEO of KoinBX crypto exchange, sees potential for positive changes in India’s crypto policy.
Potential for Positive Change in Crypto Policy
Speaking to CryptoNews, Pandian highlighted India’s willingness to engage with the growing importance of crypto assets. He emphasized that with proper regulation and clarity, India could benefit from this emerging technology while addressing potential concerns.
Indian Cryptocurrency Exchanges Keeping Pace with AML Framework
In March 2023, India’s crypto service providers were brought under the country’s anti-money laundering (AML) framework. Exchanges are now required to comply with these rules, and the government has been issuing notices to non-compliant exchanges, including Binance, Kraken, and MEXC Global.
KoinBX’s Compliance Measures
KoinBX has dedicated significant resources to enhancing its KYC and AML procedures. The exchange has implemented thorough identity verification processes, robust transaction monitoring systems, and real-time sanction scanners to detect and prevent illicit activities.
CoinDCX’s Compliance and Initiatives
CoinDCX was the first in India to register with the Financial Intelligence Unit (FIU-IND) on March 16, 2023. Sumit Gupta, Co-Founder of CoinDCX, mentioned that they established a dedicated team across various departments to ensure adherence to FIU guidelines and proactively close any gaps.
India’s Cryptocurrency Tax Slab: A Trigger to Further Crypto ‘Brain Drain’
India maintains stringent taxes on crypto transactions, with a 30% tax on profits and a 1% TDS on all transactions. The crypto industry has been urging the government to reduce the 1% TDS to 0.01%.
Impact of 1% TDS on the Crypto Industry
A report by the Esya Centre revealed that the 1% TDS has led to a massive shift of users to offshore crypto exchanges and resulted in the loss of potential revenues of approximately $420 million. CoinDCX’s co-founder, Neeraj Khandelwal, referred to the 1% TDS as a “death blow” to the industry.
Calls for Tax Reduction
CoinDCX and the Bharat Web3 Association have been actively engaging with the government to advocate for a tax reduction. The current tax structure not only hampers growth but could also lead to a crypto ‘brain drain,’ pushing talent and innovation out of India.
Effects of Crypto ETF Approvals on the Indian Soil
The global crypto industry is experiencing positive growth due to Bitcoin and Ethereum spot ETF approvals by the US SEC. This has resulted in increased institutional interest in India.
CoinDCX’s Response to Growing Interest
In response, CoinDCX recently launched CoinDCX Prime, which has garnered support from over 100 institutional investors. The exchange reported a 2000% increase in deposits from customers early this year and is offering incentives for users migrating their assets to CoinDCX.
Development of Okto Orchestration Layer and $OKTO Token
CoinDCX has also launched the Okto orchestration layer, simplifying the Web3 landscape by offering a unified approach for developers. The exchange is developing the $OKTO token, crucial for maintaining network security and promoting ecosystem growth, with plans to airdrop seven percent of the total $OKTO token supply to early adopters.
The post Exclusive: India’s Third Consecutive PM Modi Retains Finance Minister, Crypto-Friendly Approach to Continue? Exchanges React appeared first on Cryptonews.
