The State of Crypto in India

avatar of @arunava
3 min read

India has been through a lot when it comes to Cryptocurrency in general, whether it was the Banking Ban that was imposed on us or the lack of proper guidelines from the government, or the most recent extravagant taxation on Crypto profits. There are more than enough topics to choose from but today in this post I will be talking about certain aspects that are currently very much in the Hot Seat and deserve proper attention.


The Reserve Bank of India always had a negative standpoint when it came to Cryptocurrency and it was the same when Raghuram Rajan was the Governor of RBI but in my opinion, the current RBI Governor is a little too much against Crypto and that is obviously not good for us. We have seen him talk negatively about Crypto on multiple occasions including the G20 Summit where on one hand we had our Finance Minister talking about regulation and at the same time we had our RBI Governor talking sht about Crypto.


The next thing to be considered is obviously the government of India as they can make or break the situation of Crypto in India. But as of right now The government of India still hasn't cleared out its stance on Crypto. Personally, I feel like they are waiting for some other Major economy to bring regulations, and after that India will draft a law around that. But because of that, the Crypto Ecosystem is still a little Cloudy as no clear regulations are there.


Since we spoke about the RBI and The Government of India it is only fair that we talk about what the General Public in India wants and that is most definitely a Pro Crypto approach as we see the true potential of Crypto and Blockchain and how it can curb a lot of issues in our Society whether it is of getting Geniunie products or getting Fair Elections Blockchain can make a lot of things better in our lives. Plus we also have an added benefit of Investing in another Asset that can give us good returns.


Now it is no hidden fact that when it comes to tech-related stuff Indian people have been on some huge projects and Blockchain being the new toy in town it shouldn't be a surprise that a lot of people in India are indeed dabbling in Blockchain Tech. So there have been some huge Projects that came out of India and one of them is POLYGON MATIC and another that I know is the ZIONVERSE. So it is definitely clear that there are indeed a lot of Crypto related projects being developed in India but whether it stays in India or not is something up for discussion.


Recently the Government of India came out with an aggressive taxation policy for Crypto in which a 30 percent tax was announced on Crypto Profits and there would be no Offsetting of Losses with your Profits. If that was not enough the Government of India also charged a 1 percent TDS for every single Transaction whether it is Crypto-FIAT or Crypto-Crypto. So yeah the taxation is definitely very harsh and it is clearly shown with the recent Dip in the Volume of Indian Crypto Exchanges. Plus we are also witnessing that major players in Crypto Industry are now moving away from India to other Crypto favorable Countries as they should.


As I have said before India has a lot of potentials to develop some awesome Dapps on the Blockchain Network but currently they are being forced to either give up on Blockchain Development or move out of India which in turn is creating a huge Brain Drain in India. I guess we could call this Brain Drain 2.0 as we have already seen Brain Drain 1.0 around the time of the Internet.

If you ask for a conclusion I will say that Crypto in India is currently in LIMBO which is a state where something neither goes forward nor backward and we the people involved with Crypto are just looking for some clear regulations so that we could either move forward or choose something else.

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