In one of the brave ads, I saw a website that helps in calculating our crypto tax for India. I'm sure there are sites already available for other countries but for India, the crypto industry is slowly picking up speed. The main reason for it to be very slow is that there is no proper regulation yet. Even the government is still not clear on various norms and how to regulate certain things. But the good thing is that they at least want to regulate this even though they don't like it and they don't want to encourage it.
I guess the government is also pushing more toward CBDC which is the Central Bank Digital Currency. It is expected that this will go live before the end of the year. Being a blockchain developer I'm really curious to know how they are implementing this. Are they either choosing an existing blockchain for this or they are coming up with their own blockchain for the same. It would be very bad to have this inside another blockchain like Ethereum or something. Maybe it can be tokenized on multiple blockchains but I personally think that CBDC should be a stand-alone blockchain currency.
Coming back to the topic, it appears that the government now knows what to tax and what to ignore, and how to tax as well. The lawyers and auditors are getting familiarized with crypto and they are giving directions to people who are starting their crypto businesses. Once this becomes fully legal and if CBDC becomes the future, I would be very happy to come up with some bridges for other cryptocurrencies. I'm sure there will be more and more exchanges and even banks would start operating exchanges.
So far I don't transact anything with my cryptocurrencies. They are all on-chain and I don't even think about taking them to the real world. The reason is that I'm not earning so much to withdraw it to the real world and at the same time mitigating tax is also not my intention. I want to give it some more time to get more regulated. Recently Wazirx started collecting TDS from people who withdraw crypto. They can get their TDS back via returns if they pay 30% tax for their earnings. This is definitely a good move and with this, we can say that Wazirx already have our data and they are also ready to give our data to the government if asked.
With this clarity, there will be more and more people entering the crypto world. There is a small fear as to what will happen to the inflation of the physical money but there is a high chance that lots of money will be transacted here and the government will also be able to earn a lot from tax. People already pay lots of taxes for their share market trading. Now if the crypto market is also regulated, the trading revenue from crypto markets and exchanges will become a huge source of revenue for the government.
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