India should introduce ‘more principle-based’ legal framework for digital currency
Indian Electronics and IT Minister Rajeev Chandrasekhar have expressed a new regime of virtual currency rules for the ecosystem.
The government of India is working on a comprehensive legal framework that will include legislation like the proposed Digital personal data protection bill the National Data Governance framework the amended IT Rules and the upcoming Digital India AC.
Chandrasekhar noted that the new rules would be less prescriptive and more principle-based to provide for the rapid development of the country's technology sector the minister's comments were made at the 2023 tech law international conference where he explain to stakeholders to cross-pollinate ideas for the smooth regulation of the industry.
According to Chandrasekhar: "our efforts has been to improve as many stakeholders as possible in the process of law making it is the governmanet legislation as much as it's the stakeholders legistation"
Chandrasekhar said no law precludes residents from interacting with the asset class as well the basic requirements for firms looking to operate in the country's virtual currency space must seek regulatory consent and play by the book.
India's government has been criticized over its stance toward the digital asset industry and its imposition of draconian tax requirements investors have been burdened with a 30% tax on a game without the option of allowing them to offset their losses.
The new Indian budget will be scheduled on Feb 1 industry stakeholders are calling for the Finance Ministry to reduce the tax burden on the virtual currency ecosystem leading the charge is the Bharat Web3 association made up of service providers like Polygon, CoinDCX, and WazirX as they make a collective submission for the reduction of the 1% tax deductible at source (TDS)
According to Vikram Subburaj Giottus CEO "This TDS could be brought down to 0.1 on every trade without challenging its efficacy this bring more capital infusion to the sector."
There are fears that the Indian government may not budge away from the harsh policies towards the sector given the stance of the Reserve Bank of India (RBI).