India’s Finance Minister Nirmala Sitharaman announced that revenues generated by cryptocurrencies and digital assets such as NFTs will be taxed at 30% percent in the Asian country, this after the 2022 federal budget was announced.
The above, under the context in which there are between 15 and 20 million investors in digital currencies in India, so there is a market of about 5,370 million dollars, a fact that was revealed by the Reuters news agency.
However, according to various analysts this does not mean that it is a factor against people who have invested their money in cryptocurrencies, although the tax would be extremely high the country could legalize them and thus have a greater acceptance, although there is a sector that expected a lower percentage.
This was commented by Avinash Shekar, CEO of ZebPay, a cryptocurrency exchange service, who called the decision “a positive action” for the digital currency market.
There is also the counterpart, some tax advisors claimed that not only would 30% of taxes be paid, other additional charges would also be added that would cause it to rise to 42%.
Previously, the central bank of India had expressed concerns about cryptocurrencies as they assured that these could cause financial instability, which even caused several banks to divest from crypto companies. Interestingly the landscape has changed in that country since then, Sitharaman, minister of finance mentioned that next year they would launch a digital currency using blockchain.
After the news the cryptocurrency market had a rise compared to the last 24 hours, Bitcoin rose 3.73%; Ethereum increased 8.74%; Dogecoin 4.3% and Matic up 6.5%.