India to Impose 18% Tax on Bitcoin Trading

India’s Central Economic Intelligence Bureau (CEIB), an important part of the Indian Finance Ministry has put forward a proposal to the Government to impose an 18% tax on Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term trading in the country.

According to a report published by the Times of India, an estimated amount of the total Bitcoin transactions in India stands at around 40,000 crore INR ($5.5 billion), the newly proposed 18% good and services tax (GST) on Bitcoin transaction means at least 7,200 crore INR ($1 billion) additional tax revenue for the Government.

The report outlined that the CEIB has requested the Indian Government to recognize Bitcoin as an intangible asset to impose a GST levy on all Bitcoin transactions in the country. Currently, due to the lack of cryptocurrency regulations in India, the authorities have raised concerns about the usage of Bitcoin in illegal activities including money laundering and betting.

India is Asia’s third-largest economy and one of the fastest-growing economies around the world. Despite its potential, the country faced several regulatory challenges as far as the crypto market is concerned. The Reserve Bank of India imposed a ban on all banking transactions associated with Bitcoin and other Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term, but earlier this year, the Supreme Court of India lifted the banking ban on cryptocurrency exchanges.

Bitcoin Trading in India

The cryptocurrency market flourished in India this year as CoinDCX, the largest cryptocurrency exchange in India reported a significant rise in volume and daily active users.

“We saw 3X growth in the overall volume traded and saw 4X quarter-over-quarter growth in daily active users, in the Apr-Jun quarter. Overall, in Q2 and Q3, CoinDCX saw a 12% increase in signups and a 20% increase in volume. CoinDCX saw 21% Month on Month (MoM) growth in trade volume and 25% MoM growth in the number of users, in October,” CoinDCX mentioned in an announcement.

Finance Magnates earlier reported about the recent funding round of CoinDCX, in which the exchange raised nearly $14 million from international investors like Coinbase Ventures and Block one.