Indian Crypto Outfit “Belfrics Global” Seeks To Know Tax Fate As Banks Refuse To Work With Them
India’s digital assets community has decided to take a stand against its taxation obligations after the laws against local banks providing them services were abolished in the country. India’s leading newspaper company, India Times, reported that the association of crypto exchanges drafted a letter that was addressed to RBI, telling them to look into their taxation obligations. They further stressed in the letter that local banks have stopped working with them as regards this development, and they have taken a step further by involving the high Court in India.
India Crypto Seek GST Clarification
The exchange outfits want clarification as regards what classification their dealings will be grouped under to be able to know if they are meant to follow the country’s Goods and Services Tax (GST). They want to know if they are associated with dealing with goods, currencies, commodities, or services. Chief of Crypto outfit Belfrics Global, Praveenkumar Vijayakumar, was quoted as saying, “If the digital assets are not exempted from GST, the digital currency exchanges in India are going to have a standoff with the tax authority.” In the wake of the recent Supreme Court ruling, we have also approached the RBI for clarity on this, as if we pay GST on the whole transaction, then most platforms would not be able to survive,” he further stated.
CEO of Credbaco Global, Siddharth Songani, also backed up Praveenkumar’s claims when he said “the RBI was supposed to issue a new circular directing the banks to start banking relationships again with cryptocurrency exchanges and businesses” after the Supreme Court overturned the central bank’s ban.” However, Songani stated that the banks are not obeying the RBI order and are refusing to associate with them in business.
India has under par population in Crypto Market.
Chairman and CEO of Unocoin, an Indian crypto exchange Sathvik Vishwanath stated in an interview that most Indians are not accepting the crypto space and would choose to bank with local banks. With over 17% of the population present in the crypto community, only 1% of Indians are active in the market. The CEO further stated that India might take a long while before they actually measure up to their other counterparts in the crypto market. He measures a year or two before they actually start to fully adopt cryptocurrencies. He also noted that the Coronavirus pandemic has further crippled the global economy, and it is having the same effect on India, and the new appeal by the RBI might take days as a result of the COVID-19 lockdown.
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