India is one of the fastest-growing cryptocurrency countries in the world, and the market is expected to grow even bigger over the coming years.
Richard Gardner, CEO of Modulus, has pointed out that the recent regulatory move by the Indian government is a major boost for the global cryptocurrency space.
The Indian government announced that it plans to tax cryptocurrency income at 30%, a move that would regulate and legalise cryptocurrencies in the industry. Gardner said;
“India is already a large market. WazirX, the country’s largest exchange, announced that they have over ten million traders signed up, trading over $40 billion of cryptocurrency. That’s reason enough for the government to begin taxing profits. Prohibition is rarely the answer in such a case. As time goes on, government officials begin to see the long-term value of blockchain-based technologies. They begin to understand that they simply can’t wish it away. They understand that if they ignore it and ban it, they will be left behind.”
According to Finance Minister Nirmala Sitharaman, the magnitude and frequency of crypto transactions have made it necessary for the Indian government to begin taxing. She added that there had been a phenomenal increase in transactions in cryptocurrencies. Gardner added that;
“So far, Prime Minister Modi has taken the tack opposite of El Salvador’s Bukele. This is the right move for India. Digital assets are simply not going away. A personal distaste — or failure to understand them — does not mean that it is good policy to ban them. The digital assets industry is moving forward. The time to react is now. It is time for the government to encourage innovation in the arena.”
Gardner is confident that more countries will follow India’s footsteps, and this will make it easier to legalise cryptocurrencies in most countries. He concluded that;
“Because of the size of the country, as well as its tech footprint, this is a major move for the industry. And it couldn’t come at a better time. Despite the naysayers, cryptocurrency isn’t going through a winter. It is following the same path as other traditional assets and responding to external factors. India’s movement toward digital assets is proof of just that.”