Modi Urges Global Effort to Deal with Crypto, Indian Crypto Sector Remains in Uncertainty

blockchain.news:

The Indian prime minister has called for a collective global effort to tackle the challenges posed by cryptocurrencies as the country's crypto sector remains in uncertainty.

«The kind of technology it is associated with, the decision taken by a single country will be insufficient to deal with its challenges. We have to have a similar mindset,» PM Narendra Modi said at the World Economic Forum's virtual Davos Agenda conference.

Modi's comments come at a time when India has already spent much time deciding to regulate virtual currencies, but a meeting regarding the cryptocurrency bill in the winter session of the parliament in December was shelved due to a requirement for further deliberation. That has put many investors and businesses face an uncertain future.

On January 5, 2022, Blockchain.News reported, although India’s crypto sector seems to be booming, the government remains at a standstill as crypto firms have waited for legislation on the virtual token industry for more than a year.

There are an estimated 15 million to 20 million cryptocurrency investors in India, with total crypto holdings of around 400 billion rupees ($5.39 billion) according to industry estimates, Reuters reported.

Following the delay of the cryptocurrency bill, the government is now preparing to adjust the income tax rate for the investors in the upcoming budget while many are already paying taxes as «capital gains» on the gains made from the sale of cryptocurrency, the Times of India reported.

As of now, cryptocurrencies in India have not received a status of legal tender.

Adding to the uncertainty, besides regulation, the country also previously said that it plans on banning most cryptocurrencies due to high chances of corruption and financial