I don't get why there they want to demotivate all customers having forex or crypto transactions by penalizing them with huge tDS deductions. They even banned SBM recently and stopped all foreign trades which was beneficial for customers as they could pay 0% forex conversion fee. Everything that's helping the people is banned by them.
Or so do we think.
Cryptocurrencies fall under the AML policies as per the recent guidelines by government of India.
This shows that India is very much concerned about money laundering and we all know how good crypto is when using it for money laundering.
This is one of the major reasons why India is against the use of cryptocurrencies.
But according to me, India should create more regulatory policies so that Indians can trade cryptocurrencies and not use it for money laundering.
One idea that just struck in my mind is creating India's own government authorized cypto exchange which allows users to trade cryptocurrencies.
This way India will be able to track money laundering, encourage crypto trading, utilize it for taxation as well as promote the use of it's upcoming CBDC.
Ek baan chaar nishaan
I feel it's more about investing in foreign currencies. Like SBM supports Indians to invest in forex market and make foreign transactions. Hence, they banned it and are charging 20% TDS on all such transactions no matter the amount.
Crypto was something they always hated but now prefer taxing it heavily. They have started charging for UPI transactions also which is currently applicable for merchants.
