Investors face risks in India’s cryptocurrency rules since there are no clear norms or dispute resolution structures.
There are few cryptocurrency exchanges on a global scale as huge as Binance. Nevertheless, the market is quite unsettled due to the recent news of Changpeng Zhao’s departure from the position of CEO at Binance.
As Binance’s new chief executive officer, Richard Teng must overcome regulatory obstacles while also trying to appeal to a wide audience in India.
Cryptocurrencies: The Indian government is on the fence regarding them and is looking into possible legislation. This is making it harder for Binance and other cryptocurrency exchanges to function normally within the nation.
In India, cryptocurrency regulation is still in its early stages. At the moment, there is no central body supervising their use as a payment medium, and there are no defined standards. The lack of clear regulations and systems for resolving disputes makes trading cryptocurrencies risky for investors.
The announcement of a 30% tax on earnings from cryptocurrencies, together with a 1% tax deducted at source, was a major event in the Union Budget 2022. The crypto tax system, which encompasses NFTs and cryptocurrencies, was defined by this crucial change. There was a time when it wasn’t subject to any kind of income tax or GST.
The Indian exchanges have already begun to conform to the standards set by the government. Currently, they are following all applicable regulations by acting in a self-compliant manner.
These markets have acknowledged the importance of navigating the regulatory maze. They have already made preparations to meet the expected requirements of the government.
Indian exchanges are trying to head off any regulatory issues by instituting self-compliance mechanisms. As part of this strategy, organizational rules and frameworks are designed to reflect the standards anticipated by regulators. It also includes things like following KYC standards, verifying customers, and monitoring transactions. The goal of these measures imposed by the government is to stop people from launder money.
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