Indian MP says crypto is a problem for the world

india crypto

Last updated March 25, 2022

A member of India’s ruling party has made a negative comment about crypto but supports the Central Bank Digital Currency (CBDCs).

India is a technology-friendly country, where India has plenty of space for the blockchain industry, but is confused about the adoption of cryptocurrencies. At present, the crypto law is under development, but the crypto tax rule has been enacted by law, requiring crypto investors to pay 30% tax on crypto investment income + 1% TDS.

Nishikant Dubey is a Member of Parliament representing the majority-backed ruling political party Bharatiya Janata Party (BJP). Dubey said cryptocurrencies are a popular tool for people involved in money laundering or drug trafficking.

MPs also noted that the Government of India and the Central Bank (RBI) are aware of the amount of money invested in crypto by Indian citizens to date. In this way, the BJP leader noted that crypto is a problem for the whole world.

However, Dubey gave his negative comment on cryptocurrencies such as Bitcoin, Ethereum-like assets, but he appreciated the Indian government’s move towards the adoption of Central Bank Digital Currency (CBDCs).

Dubey also appreciated India’s crypto tax rule as a good move, which is actually very controversial for Crypto investors due to an additional rule of a 1% TDS system.

Controversy Over Crypto Tax Bill

At present, the majority of cryptocurrency leaders and advocates in India are against the cryptocurrency tax law.

In reality, 30% of the tax provisions have been successfully implemented and are unlikely to be changed.

But here 1% TDS, which imposed 1% direct cut of the fiat transaction amount, is a very controversial matter.

For example, if a person trades with his $100 and if he trades 100 times with that amount, he will eventually find his initial balance at zero, until the next fiscal year.

It is currently planned that 1% TDS provisions will be introduced in July this year, but this is still under discussion.

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