India may not apply a 2% equalization tax on cryptocurrency investors. Nirmala Sitharaman, India’s Finance Minister, was responding to a question from the deputy chief minister of Bihar’s eastern state about data on crypto exchanges and their investors in the country. The current administration, according to Sitharaman, did not gather any such data.
According to previous reports, the tax agency is looking into whether the equalization tax will be applied to the purchase of digital assets from foreign exchanges. This was due to the country’s expansion of the tax levy’s scope in 2020 to include “e-commerce supplies or services.” This broadened the scope of the law to include online advertising as well as business-to-business interactions.
The equalization levy on crypto exchanges, however, may not apply to investors, according to Sitharaman.
Furthermore, Sitharaman stated that the Finance Ministry had not received any information indicating that these trades were involved in drug trafficking or other forms of money laundering in the country. WazirX, one of the country’s most well-known exchanges, was recently sent with a warning for violating the Foreign Exchange Management Act [Fema].
Meanwhile, bitcoin exchanges were banding together across the country to promote their services. Regulators have already fined exchanges like WazirX, CoinSwitch Kuber, and CoinDCX for failing to provide enough warnings about the risks associated with crypto trading. The Blockchain and Crypto Assets Council [BCAC] is due to release a new set of recommendations to identify the proper methods of advertising on online platforms such as Netflix, Amazon Prime, Disney+Hotstar, and others.
The advertising standards, according to Navin Surya, a member of the crypto council’s advisory board, will become part of a self-regulatory framework that is already in the works.