India Wants To Implement 18% Taxes on All Cryptocurrency Trading
India may be ready to apply an 18% tax on cryptocurrency trading. The main intention is to apply the t (GST) to crypto traders as virtual currencies could be classified as intangible goods. At the moment, the measure is being analyzed by the Central Board of Indirect Taxes and Customs.
According to Bloomberg reports, cryptocurrencies would not be considered currencies or securities, but instead as intangible or commodities. These are important news for the cryptocurrency community. One of the most important countries in the world has defined virtual currencies as intangible goods and they would be subject to 18% tax.
If an individual buys a virtual currency and it increases in price, then the user will have to pay 18% of the profits he makes while trading. Additionally, miners will also be taxed 18% on the rewards they get.
India has been taken very strict measures to regulate cryptocurrencies and activities around them. For example, some months ago, the Reserve Bank of India (RBI) decided to forbidden banks to give services to individuals or enterprises that work in the crypto world.
Different virtual currencies in the country have decided to halt their operations because of the regulatory uncertainty that has spread in the country.
Regulations of this kind are spreading all over the world, and some countries are losing important companies. For example, South Korea has decided to ban Initial Coin Offerings (ICOs), and some enterprises decided to move overseas so as to find a better regulatory environment where to operate.
Countries like Estonia, Japan, Singapore, Malta or Bermuda are capturing the attention of many investors that want a clear regulatory framework that would let them grow and expand.