Crypto Tax In India Too High, Changpeng Zhao: Can Use The Digital Asset Industry In The Country

Binance founder Changpeng Zhao. (Photo; Doc. KryptoHodler)

JAKARTA India is one of the countries known to be unfriendly to cryptocurrencies because its government implements policies that suppress digital assets in the country. One of them is the high income tax from cryptocurrencies. Commenting on this, Binance boss Changpeng Zhao explained that the crypto industry there has the potential to collapse.

Changpeng Zhao is the founder of the world's largest crypto exchange by market capitalization, Binance. The figure known as CZ often comments on the problems facing cryptocurrencies today.

"India has a high tax, which may kill the industry", CZ said while speaking directly at a panel at a fintech conference in Singapore on Thursday, November 3, 2022, Bloomberg reported.

Apart from CZ, a figure from the crypto industry who commented on conditions in India. Other figures also commented on crypto taxes in the country which are considered to have the potential to tighten the development of cryptocurrencies. Tax measures passed by the government this year led to a decline in digital asset trading.

While India has been expected to introduce a comprehensive regulatory framework for cryptocurrency trading since last year, governments prefer to impose burdensome costs on revenues and transactions to limit their trades.

Binance is India's leading cryptocurrency trading platform. In August, app downloads jumped to 429,000. This is three times CoinDCX, which follows it in a favorite exchange table, according to data from the sensor Tower intelligence firm.

Since a 1 percent tax on cryptocurrencies came into effect in July, trading has fallen by about 90 percent on India-based major exchanges. Likewise, trading platforms have difficulty moving their money in and out of the country.

For this reason, Indian crypto exchange ZebPay plans to expand its growth abroad, CEO Avinash target announced in August. The executive emphatically stated that transaction tax should be down due to "if not, the situation will not improve."

Binance has managed to overcome these difficulties, allowing it to monopolize the biggest part of crypto cakes. Their strategy is to charge users lower costs, increase and diversify offerings, and increase peer-to-peer trading to facilitate token and cash movements.

In addition, foreign platforms operating in India handle 1% tax issues differently. While Indian platforms charge users for that, other platforms like Binance and FTX don't.