Crypto likely to become expensive in India after crypto bill
hive-167922·@karamyog·
0.000 HBDCrypto likely to become expensive in India after crypto bill
 [Source](https://news.bitcoin.com/indian-government-cryptocurrencies-crypto-regulation/) The draft crypto bill is most likely to be presented before the parliament in the Winter session. New reports have surfaced which reiterate the fact that the government does not intend to ban cryptocurrencies in India and will most likely treat cryptocurrencies as an investment class. India's central bank continues to hold the same view - Cryptocurrencies pose a systemic risk to the economy. In fact, the central bank governor said this in a conference that was conducted last week. Even the government thinks that this view is too stringent and that it is similar to China's viewpoint! The government wants to address the issue by having a more lenient stance. Thus, they will implement regulations and treat crypto as an investment class. However, if the government approves something, it comes with a caveat. By allowing crypto the government can tax crypto. Direct taxation is ok as it is applicable to every investment vehicle. However, the Indian government plans to have GST on crypto transactions. Even Gold attracts a 3% GST in India. Moreover, crypto-related services such as custody, brokerage, etc may attract 28% GST. Thus, an Indian investor will have to pay 3% GST on crypto transactions and also pay 28% on the fee brokerages make, thus making Bitcoin even more expensive in India compared to the global market. Bitcoin should trade at a premium in India, especially if it becomes a big enough asset class globally. This is because Bitcoin is a global store of value that does not require an investor to bear third-party counterparty risk, that too a counterparty from India that scores poorly in terms of credit risk compared to global custodians. Then there are additional costs to hedge risks such as FX risk. However, GST is just an additional cost that Indian investors will be forced to pay. Indian investors will unnecessarily have to buy expensive Bitcoin compared to global peers. Well, the good thing is that the Indian government is allowing them to buy it in the first place! Posted Using [LeoFinance <sup>Beta</sup>](https://leofinance.io/@karamyog/crypto-likely-to-become-expensive-in-india-after-crypto-bill)
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