The Current State Of Crypto In India

When we think of crypto in India then I would say this year 2022 has been one after year with mixed situations in India. Maybe I can say that this is not a good year for the Indian crypto community since the government has started doing a lot of things that are not crypto-friendly and it shows that the government is not trying to encourage it since they are trying all possible ways to bring more issues on the way of the crypto community. I feel that crypto in India is like whether you love it or hate it but you can't ignore it. It's because the government is not trying to ban it completely but they are also not trying to give a friendly environment where everyone can trade with peace of Mind and can pay off whatever the tax liability.

Current Crypto State in India

crypto in India is currently neither illegal nor legal so there is no punishment is someone holding crypto or trading crypto however there is no such regulation mechanism in place. Due to a lack of regulations, many businesses and start-ups are not able to decide whether they should enter crypto or not and this is one of the reasons why mass adoption in India is yet to come. So in simple words, you can buy or sell crypto and you can even hold crypto and there is no such rule that can stop you however if you earn something then you are liable to pay tax as per the applicable taxation laws.

Indian Govt

To be honest I would say that the Indian government has not done anything good for the crypto community instead they are trying all possible ways to stop it however they are not even clear that they should completely stop it or give some alternate option. The finance ministry had shared some updates in the past that they are exploring the possible options but unfortunately this has taken a long time no such update has been shared yet. They have announced that crypto income will be taxable with 30% flat effective first April 2022 and later they even applied the TDs of 1% but even now there are no clear guidelines provided by the government. This shows that government is only concerned about picking I use deduction on the income made through crypto but they're not bothered to see what are the challenges that they have created and how the community has been suffering with these recent tax rules. I don't understand what was the need to announce everything in hurry without doing the proper homework and even now they are not sure whether they should regulate it or not however they are always saying that they are exploring the possible option which I think it's just a way to fool people. If they are expecting the people to earn money and pay whatever is the tax liability then it is obvious that they must provide all the required support so that people can trade or work in this segment so that things are easy for them and they feel like paying taxes with happy mind.

RBI

This is one of the government bodies that has not been in favor of crypto since the beginning and even now they keep on sharing the circular that it is a risky business and people should refrain from investing however they are yet to prove what are the reasons why they are considering the crypto as risky business. I know that it's their job to protect the funds of the Indian people but why they are not showing that much care when some companies in the stock market go bankrupt and people lose a lot of money? This biassed behavior is something that I do not like and I believe that they should follow a proper and fair practice with any segment and that too going with the proper study and providing sufficient facts. Because of the RBI banking support was withdrawn in the year 2018 and after a struggle for almost two years, it was restored post the court intervention. There was a time in 2018 when the RBI started a blanket ban for the crypto community where the banking support was withdrawn and this was a tough time however some Indian exchnages did pretty well and introduced the p2p option so that community can at least transact or trade.

Media

The mainstream media was against crypto earlier and they used to share rumors however later they realized the potential it seems and I have seen some of the media houses provide accurate information and they even started covering crypto as one of the segments like they do for is sports or technology. I agree that in the beginning, they were not doing good but now I like the way how media is sharing the information and presenting crypto. Because of the media now, a lot of people in the country are aware of crypto however basic education is still not provided but at least a major chunk of the people are aware of the name of Bitcoin.

Indian Crypto community

I am in crypto since 2017 and it's been five years. During this period I have seen many positive changes and tremendous growth. There were very few exchanges when I joined crypto and during the banking ban, some of them were closed however many new ones came in which did pretty well and contributed to the betterment of the crypto community in the country. I remember that it was the time when we were only able to buy or sell crypto but now things have gone to the next level and with crypto Indian crypto exchanges we get everything that international exchanges offer as of now. So we cannot say that Indian exchanges are not up to the mark instead I would say that they have built this kind of infrastructure when they are not provided any support by the government and finance ministry but they have proved that they are capable enough to build. Just imagine if the proper support is provided then how things can grow and what are the possibilities that can be achieved in this space I'm very sure that India can be a leader if the government plays a supportive role in this sector.

I am not sure whether things will change real soon as the current situation is not good and it does not seem that government is going to make any changes in anything that they have introduced this year. Exchanges are struggling with the volume after the implementation of TDS but still, they are not ready to give up which shows that they are trying to build and must be appreciated.

Future of web3/Crypto in India

I'm quite optimistic about the future of web3 in India the future of crypto and web 3 in India. Indians are known to be the ones who adopt the technology first and they also try to make things better. We have two-minute in the past and I'm sure that with web 3I is going to do well and this is going to be a game changer in India as well along with the world. Even in web two Facebook has got a huge number of users from India and this is one of the biggest markets for any web two company so I am sure for web three also India is going to be a bigger market. In the next five years, we are going to witness revolutionary changes in the country with the adoption of web three and blockchain technology and this can be even better if the government changes its mindset and start supporting this new form of technology.

Thank you so much @indiaunited for this Contest. This has given us the opportunity to talk about the crypto situation in India. I feel that things will be better but might take a long time to happen.

Thank you.

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