Indian regulator proposes 18% tax on bitcoin trading

by in Cryptocurrency News

India

The Central Bureau of Economic Intelligence of India (CEIB) is proposing an 18% tax on crypto trading. The agency classifies BTC as an "intangible asset".

That is a Goods and Services Tax (GST). The government is currently considering a suggestion that would levy a tax on every bitcoin transaction and margin trade.

The skyrocketing volume in crypto trading came after the Supreme Court overturned a two-year ban from the Reserve Bank of India (RBI) on serving crypto companies.

The average daily trading volume on the top four Indian crypto exchanges was over $ 36 million as of December 29, 2020, up from just under $ 4.5 million as of March 1, 2020.

Trending: US Treasury Ex-Secretary predicts BTC price will increase

The annual turnover of bitcoin trading in India is $ 5.45 billion, the crypto is not ruled. BTC exchanges in the country continue to operate without the burden of regulatory compliance.

Recall that in July 2020, Prime Minister Narendra Modi announced the need to develop the Internet of Things, Big Data, blockchain, and 5G.

Earlier, venture capitalist and billionaire Tim Draper said he was studying the investment attractiveness of Indian crypto startups.