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Senators in the United States have introduced the Crypto Tax Fairness Act, which aims to speed up the adoption of cryptocurrencies in the United States. To establish the legitimacy of digital money as a payment method, legislation is being introduced. Taking this step may also encourage other countries to adopt new technologies, which will ultimately improve the performance of digital assets around the world. One of the countries where digital assets may serve as a model for others in India.
In addition, investors are required to keep track of any cryptocurrency gains they generate but however, personal transactions using virtual currency would be exempt from taxation under the Virtual Currency Tax Fairness Act if the gain was less than $200.
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India VS US Crypto Tax Law
Instead of imposing flat rates on cryptocurrency earnings, as India does of 30%, the United States statute establishes a suitable tax framework. It allows investors to use bitcoins in a variety of ways in a matter of minutes. The US law wants to expand the use of cryptocurrencies for payments. Regardless of the amount or purpose of the transaction which includes purchases as modest as simple as purchasing a cup of coffee in the US.
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For India, it will levy a 30% tax on revenue generated by cryptocurrencies and other digital assets. A digital currency based on blockchain technology and other supporting technologies will be introduced by the central bank, according to the finance minister.
Approximately 400 billion rupees ($5.37 billion) worth of cryptocurrencies is believed to be held by 15 to 20 million Indian cryptocurrency investors, according to industry estimates. It's impossible to know how big the Indian cryptocurrency market is because no one keeps track of it. Digital currency supporters had hoped that a proper tax system would protect the crypto industry from some of the more severe measures that the government was considering.
Central bank-issued digital money will have a significant impact on the digital economy. There are numerous benefits to adopting digital currency, including more efficient and cost-effective currency management systems.
Would you rather hold your Cryptocurrencies in India or US?
Who’s Next to Implement Crypto Tax Law in the country!?
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