Union Finance Minister Nirmala Sitharaman stated on Monday, April 18, that the main danger associated with cryptocurrencies is that it might be used for money laundering and terror funding, adding to the already shaky cryptocurrency sector in India.
“The biggest concern for all countries across the board would be the element of money laundering and the use of such currency for financing terror,” Sitharaman warned.
Nirmala Sitharaman was addressing at an International Monetary Fund (IMF) conference.
“I think regulation using technology is the only answer. Regulation using technology will have to be so adept, that it has to be not behind the curve, but be sure that it is on the top of it. And that’s not possible if any one country thinks that it can handle it. It has to be across the board,”
Union Finance Minister, Nirmala Sitharaman
Nirmala Sitharaman’s stand on crypto
On the first day, Sitharaman spoke at a panel discussion on “Money at a Crossroad,” moderated by IMF managing director Kristalina Georgieva, about India’s digital performance and the government’s efforts to build digital infrastructure over the past decade, emphasizing the country’s growing digital adoption rate.
Sitharaman also stated that India has the greatest startup environment during the conversation.
“Fintech businesses account for one out of every four startups, and they are quickly becoming unicorns. In the previous 2-3 years, fintech has produced 20 unicorns,” she noted.
Despite all of this, the 30% tax and 1% TDS are unjustifiable and way out of the line. It is clear that a country that once was skeptical about cryptocurrency started taxing it at 30% without an option to set off the losses.
An Indian MP clearly said that he wanted to demotivate the youth from investing in cryptocurrencies and suggested a 50% tax on crypto. India’s stance will definitely kill the industry, and the potential startups will flourish elsewhere.
The not-so-pleasing crypto taxes have raised concerns among the investors and exchanges where the volume of trades in the crypto exchanges has plummeted drastically. Indian government is also planning to release its own digital rupee soon.