New Regulation a Potential Boost for India’s Crypto Market?

Most of the Indian crypto exchanges have been cheering the new tax reporting framework released by the Organisation for Economic Co-operation and Development (OECD). This comes at a time when there has been a steady decline in the trading volumes on crypto markets.

The Indian exchanges are also hoping that the OECD’s Crypto Asset Reporting Framework (CARF) will lead the Indian government to come up with its own rules in India, and possibly even help in reviving the crypto market.

Experts in the Indian crypto space believe that this week is a key one for the entire crypto space. Talking to BSC News, Ashish Singhal, Co-Founder and CEO of leading Indian crypto exchange CoinSwitch Kuber, believes that the G20 Ministers and the Central Bank governors are all set to review the OECD framework on the taxation of crypto.

“The world will be keen to hear about India. We have been ahead of the curve on setting a reporting framework, although there’s scope to refine aspects like TDS of 1%. India is to assume the Presidency of the G20 later this year. It’s an opportunity to shape progressive policies that can make India competitive and spur innovation,” Singhal said.

He added that, likewise, India can benefit a lot from OECD guidance, such as the definition of “relevant assets.”

Nirmala Sitharaman, the Finance Minister of India, has said that cryptocurrencies are definition “borderless” and therefore any legislation for regulation can be made effective only after there is a collaboration by evaluating the risks and benefits.