Cryptos, governments, and the real reasons why they don’t really get along

ambcrypto.com:

Cryptocurrency regulations.

This has been an extremely contentious topic of debate within the cryptocurrency community across the globe. Why isn’t any country bringing about structured crypto-regulations? Well, I’ll try to answer that in the context of India and extrapolate it to the world.

The Indian government has introduced prohibitively high taxation on crypto-trading in the country. From a flat 30% tax on all gains to the 1% TDS. Not to forget, gains in one crypto can’t even be set off against another crypto, let alone another asset class altogether. And the Indian Finance Minister has been very clear about it. According to a report by the Financial Express on 19 April, she said,

“We did announce that on the income that was generated out of the transactions of these crypto assets will be taxed at 30 per cent and over and above that, there is a 1 per cent tax deduction at source which is also imposed on every transaction. So through that we will be able to know who’s buying and who’s selling it.”

This has racked up so much attention that even the Supreme Court was forced to take cognizance of the matter and knock on the government’s door, asking for clarity on crypto’s legal status.

But zooming out, it is quite evident that India isn’t the only country that is unclear whether it likes crypto or not. Most major economies are still on the fence about it.

A regulatory framework in cryptocurrencies would require a global sit-down between nations to decide its fate. This is because it isn’t an India-specific or U.S-specific issue to be resolved.

Take the example of international money transfer through SWIFT – It’s a global cooperative initiative to facilitate international transfer of funds. A similar framework is highly