Press Cryptocurrency, India Is Not Good For Crypto Industry

India presses domestic crypto. (Unsplash)

JAKARTA – The decline in the crypto market and strict supervision from the government has given its own difficulties for the crypto industry in India. Meanwhile, the central bank of the Indian Reserve Bank of India (RBI), which is known to be anti-crypto, plans to stem the rate of cryptocurrency by implementing blockchain technology in the banking system.

Currently India imposes a tax on crypto trading of 30% of the income earned. In addition, there is a new tax that will be implemented on July 1, namely a tax of 1% of all crypto asset transfers in India.

Due to high crypto taxes, India is no longer considered a good country for the development of the crypto industry. Previously the crypto industry in India had rapid growth, amounting to 600%, according to a report from Chainalysis.

With strict policies against crypto, currently the development of the digital asset industry there is experiencing a downward trend. Currently RBI is collaborating with a number of other state banks and multinational companies including IBM to work on a blockchain technology pilot project.

This is intended to combat fraud that has been threatening the banking system in India. Although the Indian government suppresses the movement of domestic cryptocurrencies, it seems they are not avoiding the technology used in crypto, namely Blockchain.

Instead, they adopt blockchain technology while tightening regulations on cryptocurrencies. The Indian government believes blockchain technology can be used for greater control over the financial system to prevent illegal activities.