Newsworthy: India may impose 18% tax on cryptocurrency trading soon. It's a great news. Really!

Hi fellow Steemians!

It's being reported that India is considering on levying an 18% Goods and Services Tax (GST) on cryptocurrency trading.

Many may say well isn't that bad? Well, I say, it's not bad. Here's why.

Current Situation

Currently India faces two problems regarding cryptocurrency.

1. Tax on crypto is difficult to calculate. You can head over here for an answer, but it's a very difficult and tedious thing to calculate. The tax rates differ on whether you're trading in the short term / long term, holding them as investment, etc.
2. Indian Reserve Bank hates crypto. Recently they made local banks stop advising the public on cryptocurrency and made them focus on crypto's negative aspects.

What's being changed?

It seems that India is classifying crypto as "intangible goods", like software systems. In doing so, trading cryptocurrency will result in 18% GST, which is actually lower than the original tax rates.

Why is it good?

Well other than the obvious 'lower tax rate', this is a positive news because the Indian Government is recognising cryptocurrency as a legitimate good and a source of income. Before, traders and investors in India were unsure whether the government would ban crypto or not. The uncertainty is now gone.

Conclusion

Well I can only say that this is a step in the right direction for Indian and global cryptocurrency markets. With it being recognised as a legitimate currency / good, there is more certainty and crypto can be better regulated for the benefit of traders.

Source: CCN
Image source: Wikipedia