Crypto-currency exchanges are in talks with the government to elaborate regulations on the day-to-day deposit and withdrawal activities of investors.
CoinSwitch, one of the best digital asset exchanges in the country, has said that the deposit and withdrawal functions of its crypto-currencies will be disabled until regulations are introduced.
The exchange said this after a few investors’ accounts on Twitter about not being able to access them for the past few weeks.
In response to complaints, CoinSwitch tweeted, saying “the crypto-deposit / withdrawal feature will remain disabled until we introduce the scheme, as we are already in talks with regulators and policymakers.”
Hey Harkirat, we fully understand where you’re coming from. However, the crypto deposit / withdrawal feature will be disabled until we introduce the scheme, as we are already in talks with regulators and policy makers.
– CoinSwitch Kuber Support (@CSKSupport) April 12, 2022
This development contributes to a long list of uncertainties about the outcome of the proposed outcome of legislation for digital assets.
The bill has been delayed, with reports suggesting the government will wait for a global consensus before including it in parliament.
While there is no official data on cryptocurrency investments and transactions in India, a conservative estimate suggests about 20 million investors with about $ 6 billion in holdings, with a large market base yet to be applied.
Industry experts believe that reforms to the bill with more extensive consultation could make India a crypto hub and ahead of blockchain tech.
While the government has said it intends to promote underlying technologies such as blockchain, in the budget, the government has previously levied a steep tax of 30 percent on income from trading in cryptocurrencies and a 1 percent TDS levy on each such transaction, beginning April 1, 2022.
That decision was announced in the union’s budget for 2022-2023 by Finance Minister Nirmala Sitharaman.
Also, the new tax statement that the losses of digital assets in one transaction cannot be compensated by profits made by another transaction has received much criticism.