Tax rules forced $4B in Cryptocurrencies out of India in 2022
Hello
In today's dispatch, we have:
$4B in Cryptocurrencies out of India in 2022
Indonesia plans to launch crypto exchange in 2023
Mumbai Indians have entered the web3 space
Back in March 2021, the Indian government implemented a new tax regime for cryptocurrency transactions. Under this regime, Indians were required to pay a 30% tax on capital gains from crypto assets and 1% TDS. This has led to a significant amount of crypto trade volume moving out of India. According to the study published by Esya Centre, India - ₹32K crore (approx. $4.3 billion) in trade volume has left the country since the new tax regime was implemented
One of the main reasons for this exodus of trade volume is the uncertainty surrounding the new tax rules. Many traders were unsure how to calculate their capital gains and were worried about facing penalties if they made mistakes. As a result, they are opting to trade on exchanges outside of India, where the tax rules may be more clear and predictable.
It seems like about 17 lakh Indian users have shifted from centralized domestic exchanges to overseas counterparts since the announcement of the tax system.
Following the plan in Budget 2022 could result in a loss of around Rs 99.3 trillion in trade volume over the next four years.
The tax treatment of cryptocurrency varies from country to country. Some countries offer relatively favourable tax regimes for cryptocurrency transactions.
In Countries like Malta, Switzerland, Portugal, Belize and Singapore Switzerland: Cryptocurrency gains are not subject to tax as long as they are not considered "business activity". Most of the above ones have established themselves as a hub for cryptocurrency and blockchain-related activity and have implemented fairly lenient tax policies for cryptocurrency transactions.
Indonesia to launch crypto exchange in 2023
As a part of its reform of crypto regulation, The Indonesian crypto industry will undergo significant improvements in 2023. The island nation will soon launch a crypto exchange.
The Commodity Futures Trading Regulatory Organization of Indonesia, or Bappebti, will hand over control of cryptocurrency assets to the Financial Services Authority, a securities-focused agency.
The acting chairman of Bappebti, Didid Noordiatmoko, announced that the FSA would take over regulatory authority for crypto assets from the commodities agency within the next two years.
The change in regulatory authority will impact the 383 crypto assets and ten local coins that are now available in Indonesia. Bappebti is currently evaluating 151 additional assets and 10 local coins. Despite an industry-wide slowdown, the country has 16 million crypto investors, with more flocking in.
Btw the country also announced plans to establish a CBDC branded "Digital Rupiah" in December 2022, which would be utilized for various digital commercial and financial operations.
Mumbai Indians have entered the web3 space
The well-known cricket team "Mumbai Indians," often known as "MI," has entered the world of digital collectibles Non-Fungible Tokens (NFTs). The parent firm of the franchise, Indiawin Sports Private Limited (ISPL), announced the release of the Request for Proposal (RFP).
It invites proposals from Global and Indian entities to create and launch the NFTs based on its existing IPs and leverage Mumbai Indians’ global brand value. With over 50 million followers on social media, the Mumbai Indians franchise is looking for new ways to engage its devoted audience.
The two captains of the Mumbai Indians had already left their mark in this space. Last year, Rario, the first officially licenced digital cricket collectibles marketplace, collaborated with Sachin Tendulkar. Fans were able to purchase his digital memento’s on the platform
Following that, Indian cricketer Virat Kohli announced his entry into the metaverse on October 20, 2022, in collaboration with web 3.0 and NFT-based platform Fancrase, where he will unveil his digital collectibles.