Violators of these rules can be in trouble. Violators of the new crypto law can be imprisoned for up to seven years. Debasish Nayak, an expert in cyber law, told Gadgets 360, “The evasion of tax can result in imprisonment of six months to seven years, depending on the type. In case of excess amount, fine which may extend up to 200 per cent. could.” Laws for Virtual Digital Assets (VDA) have been implemented in the country despite protests from many people associated with the crypto industry. According to an estimate, more than 100 million people in the Indian subcontinent hold cryptocurrencies. This is about 7.3 percent of the population of India.
Crypto firms are apprehensive that the introduction of tax on this segment in the country may pull investors out of it. Legal experts believe that the government has taken this step after seeing the right opportunity. “Given the interest of investors in crypto and other digital assets, it was important for the government to bring in a clear tax and regulatory framework,” says law firm Trilegal. The central government recently said that it is not considering giving any tax exemption or benefit to crypto miners and other people associated with the industry. These people can spend huge sums of money to run the crypto-connected ecosystem.
However, this approach of the government has angered the crypto industry as the equipment used in crypto mining costs more and because of this many people may avoid experimenting in this segment. In some other countries including America, work is being done on making laws regarding crypto.
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