Global consensus on crypto regulation positive, but taxation remains sticking point

While the consensus reached in the G20 Leaders’ summit on setting a common framework to regulate cryptocurrency has brought a sigh of relief to the beleaguered industry, in India, the 1 per cent tax deduction at source (TDS) on every transaction remains a pain point. The industry is now lobbying to have this reduced to 0.1 per cent, citing various reasons for it.

The synthesis paper jointly released by the Financial Security Board (FSB) and the International Monetary Fund (IMF), earlier this month, is a recognition that a blanket ban on the asset class would be counterproductive. Saved from the perilous wrath of governments across the globe, the industry is cheering the Crypto-Asset Reporting Framework (CARF) proposed by the synthesis paper.