India to regulate crypto not ban it; Thailand ditches 15% crypto capital gains tax
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This is written with some caution, considering its history of flip-flopping banning chatter, but it appears India is now finally set on legalising, regulating and taxing cryptocurrencies.
It’s absolutely huge news for the burgeoning and highly innovative crypto industry there, and globally, if this pans out.
Additionally, the world’s second-most populous country has plans to introduce a CBDC (central bank digital currency) in the form of a digital rupee by 2023, which finance minister Nirmala Sitharaman believes will be a “big boost” to India’s digital economy.
In her 2022 budget speech, Sitharaman also noted the possibility of a more efficient and cheaper currency-management system made possible by blockchain and digital currencies.
“It is therefore proposed to introduce digital rupee using blockchain and other technologies to be issued by the Reserve Bank of India, starting 2022-23,” said the minister.
— All India Radio News (@airnewsalerts) February 1, 2022
Sitharaman also proposed the introduction of a 30 per cent, all-encompassing crypto tax that would include all transfers of digital assets:
“Any income from transfer of any virtual digital asset shall be taxed at the rate of 30 per cent. No deductions in respect of any expenditure or allowance shall be allowed while computing such income, except the cost of acquisition.”
— Crypto ₿ ™️🍥🔶 (@Crypto_bn) February 1, 2022
The finance minister also said that any losses occurred while transacting digital assets (such as from exploits or fat-fingered errors) cannot be used as compensation or taxation offset against any other income source.
Meanwhile, moving about 2,400km east from India over to Thailand, there’s further eye-opening crypto-regulation news doing the rounds.
The country has decided to hold off on implementing a 15 per cent capital gains taxation plan for crypto, which is significant considering Thailand is one of Southeast Asia’s biggest digital-currency-trading markets.
The initial proposal from the country’s revenue department, made in January last year, had reportedly met with significant backlash.
The opposition for the taxation has been spurred by the belief that 15% CGT leans too far towards industry-stifling regulation in a country that still has PTSD over the region’s crippling 1997/98 financial crisis, notes the Financial Times.
It appears far more palatable taxation will still be implemented, with the country’s tax officials announcing yesterday that those earning income from crypto trading or mining could report these as capital gains on their income taxes and offset losses against gains made in the same year.