Cryptocurrency exchanges News: India represents a huge market for crypto assets. Foreign cryptocurrency exchanges operating in the major Indian market may soon start paying a new 18% tax. While India’s central bank has taken a hostile stance towards local digital asset exchanges, it looks like the country will try to impose a new tax on foreign trading platforms, which have recently taken a significant share of the market.
The world’s second most populous country continues to grapple with cryptocurrency regulations and legislation. The latest report on the subject claims that foreign digital asset exchanges may be subject to new taxation.
New crypto tax from India
Cryptocurrency exchanges may be required to pay GST if they are found to have clients operating from India. GST; Service tax in India is the tax law that replaces the old indirect taxes such as Value Added Tax, excise duty and certain state and central taxes. This is a double taxation model in which both Indian states and the central government of India impose taxes on services and products.
By coverage, almost all such crypto trading platforms are currently tax-free. However, if the new proposal goes into effect, they will be taxed at 18%. Businesses providing Online Database Access and Retrieval (OIDAR) services will appoint a designated team responsible for paying taxes.
At the same time, a Reuters report noted that local exchanges are still struggling to find banking institutions willing to work with them. This is because the Reserve Bank of India continues its negative policy towards the sector despite the lifting of the previously established ban. While the government is considering how it should treat crypto assets, the RBI argues that they are too speculative and dangerous. Recently, the bank’s manager said that the bank has conveyed its concerns to those in power.