Topic: A perfect utilization of cryptocurrency technology (Read 76 times)
So ultimately everything boils down to paying taxes or not. And yet, there is a huge economy working within the country that works on cash - completely undocumented, and yet no one is worried about it. Even the local chatwala, samosa wala, chaiwala - earns Rs 2k a day to 5k a day (guess their monthly income? ) selling stuff on the road side - all cash transaction, no records - no taxes and everything is fine. And yet, someone uses crypto to transfer money to their families - and taxes becomes an issue.
Bitcoin was created as an alternative payment system that would operate free of central control but otherwise be used just like traditional currencies. Shortly other cryptocurrencies followed with a much better and faster payment network. We generally read and hear how people are utilizing this feature for international payments. A lot of Indian expats now have started using cryptocurrencies to remit money to India. This is not only helping them with a cheap transaction fee but also their families are now getting access to the money immediately. Read this below article and do share your views.
http://economictimes.indiatimes.com/nri/invest/many-indian-expats-turn-to-crypto-to-remit-money/articleshow/87247432.cms
http://economictimes.indiatimes.com/nri/invest/many-indian-expats-turn-to-crypto-to-remit-money/articleshow/87247432.cms
That is one of the major concerns of Indian government alongside the usual money laundering clause. When money is transferred through the usual channels, government earns tax revenue from both side of transaction. Also income tax is applicable to the recipient of that money. Now if that same person is using a crypto wallet to remit that money, government is not getting tax revenue. Moreover, if people are using p2p method to convert their cryptos, It becomes increasingly difficult for the government to track them as foreign repatriated income.
But when it comes to savings for an individual working abroad, that makes complete sense!
This has good and bad side to be honest, as long as people are paying the taxes this will work but we never know how people are using this loophole to evade taxes that is why Central bank is still trying to restrict the cryptocurrency conversions on exchanges.
Unless cash dealing, these conversions go through exchanges where kyc is mandatory.
This has good and bad side to be honest, as long as people are paying the taxes this will work but we never know how people are using this loophole to evade taxes that is why Central bank is still trying to restrict the cryptocurrency conversions on exchanges.
Bitcoin was created as an alternative payment system that would operate free of central control but otherwise be used just like traditional currencies. Shortly other cryptocurrencies followed with a much better and faster payment network. We generally read and hear how people are utilizing this feature for international payments. A lot of Indian expats now have started using cryptocurrencies to remit money to India. This is not only helping them with a cheap transaction fee but also their families are now getting access to the money immediately. Read this below article and do share your views.
http://economictimes.indiatimes.com/nri/invest/many-indian-expats-turn-to-crypto-to-remit-money/articleshow/87247432.cms
http://economictimes.indiatimes.com/nri/invest/many-indian-expats-turn-to-crypto-to-remit-money/articleshow/87247432.cms
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