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Bharat Web3 Association urges Indian authorities to reduce taxes on cryptocurrencies

The Indian association Bharat Web3 Association (BWA) called on local authorities to soften the tax policy on cryptocurrencies, as this harms the development of the industry in the country.

The Bharat Web3 Association has asked the Indian Ministry of Finance to consider reducing taxes on cryptocurrencies during its 2023-2024 budget consultations. The BWA, which includes cryptocurrency companies Coinbase, CoinDCX, CoinSwtich Kuber and Polygon, said that unfriendly tax policies, together with uncertainty about digital asset regulation, are hurting the development of crypto business in India.

Currently, Indian traders pay a 30% tax on profits made from trading cryptocurrencies, as well as a 1% tax deduction (TDS) on each transaction if it exceeds 10,000 rupees (about $122). This greatly harms cryptocurrency trading in India – trading volume has decreased by 90% on local trading floors.

“BWA aims to draw the attention of the authorities to the negative impact of existing taxes on cryptocurrencies. We are ready to discuss with the Indian government amendments to the legislation that will help protect the interests of cryptocurrency users and at the same time ensure the growth of this sector,” said a representative of the Bharat Web3 Association.

The association believes it is essential that the Ministry of Finance develop a reliable regulatory framework to protect traders and investors from situations like the liquidity crisis at the FTX exchange. The organizers of the BWA believe that the collapse of FTX is due to a lack of corporate governance, which happens in traditional finance. Therefore, a well-developed legal environment will help improve the situation and increase trust in crypto assets, BWA said.

In March, Nischal Shetty, the founder of the WazirX cryptocurrency exchange, also urged Indian lawmakers to lower taxes on cryptocurrencies in order to prevent the outflow of talented specialists from the country.

Source: Bits

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