Cryptocurrency remains unregulated in India, with a 30% tax rate on every return, and now an Advert regulation on Crypto. Without a doubt, India is struggling with how to best approach the emergence of cryptocurrency in the country. Controversies still hang around how to regulate crypto in India and the new Advert regulation further contributes to it.
Content of the Advert regulation on Crypto
Advertising Standards Council of India (ASCI) released a guideline few days ago, insisting crypto adverts should carry a “Highly Risky” tag. Additionally, the guideline professes that advert should include a disclaimer that crypto investment is nonrefundable. It also included that advertisers must not paint crypto as a way of solving financial problems.
Consequently, Advert regulation on Crypto also barred advertisers from using words like Currency, Securities, Custodian, Depositories. It states that these words are unusable because they are synonymous with industries under regulation.
The perceived game
Notably, the regulation is subsequential to the call by the Delhi High court for the regulation of Crypto. Last Year, The Delhi High court charged government agencies to work on a regulatory framework for Crypto. However, while the regulation is aim at protecting Indians, it will have a negative impact on the industry. It is hypocritical for the country to impose such directives while there are no definite regulations on crypto. While it remains unregulated, and a 30% tax rate, why should India still tag crypto as highly risky?
At this stage, it is glaring that the Indian government is selfish with its approach to the industry. The 30% tax rate on crypto is a child of a hypocritical father. Like a Pen gift to a soldier on a battlefield, it’s a dangerous gift that poses more harm than good. While Crypto faithfuls in India are hoping for a regulatory framework, the government slammed them a tax rate. Back then, the tax rate came as a relief. As an insight that the government is likely to regulate and not ban crypto, Contrary to RBI’s call for an out straight ban.
Crypto was perceived as a taxable asset when the government imposed a hefty tax rate. The advert regulation barred adverts from describing Crypto as means of solving financial problems, but the government perceived it taxable. The ASCI has the volatility of crypto in mind while drafting the regulation. Thus, deeming it fit to protect newcomers but the Indian government did not consider it for the tax rate. Without a doubt, this is hypocrisy at the highest level.
The Division in India about Crypto
The recent development about crypto in India further illustrates the division in the country about how various institution perceives it. The Reserve Bank of India (RBI) Is a strong opposition to crypto in India. The financial institution argued that crypto should be totally ban in support of a CBDC. The Prime Minister of India, Narendra Modi while speaking at a virtual conference early this year called on countries to join forces to tackle the challenges of Crypto.
The New Advert regulation on Crypto further depicts the division. The division is thematically dominated by the country’s confusion on how to best approach the industry. It further expresses how the government is solely concerned about stiffing revenue out of the industry without caring about investors. It is also dominated by the tireless effort of a part of the Indian government to crumble crypto in India. Lastly, the foregoing should give investors an insight into what they should expect at the arrival of the crypto bill in India. It has been fully establish that the Indian government is keen on sucking every available life in crypto.
