India’s Government Considers Taxing Bitcoin Transactions as Trading Volume Around the Cryptocurrency Soars

India’s Government Considers Taxing Bitcoin Transactions as Trading Volume Around the Cryptocurrency Soars

Just ten months after the Supreme Court in India removed the ban placed by the Reserve Bank of India on cryptocurrency trading, fresh reports show that the country’s taxation authority has picked interest in cryptocurrency traders, as Bitcoin (BTC) continues on its bullish rally.

Local media report that the Indian Tax Department already has data of investors who partook in Bitcoin transactions through banking channels before the RBI ban in 2018.

Recent data shows that cryptocurrency trading activities in India have surged significantly since the ban got lifted.

The two largest cryptocurrency exchanges in India, Binance-acquired WazirX and CoinDCX have recorded increased activities over the past six months. Reports show the WazirX saw a whopping 125% increase in new user signups over the past two quarters. The exchange also announced a daily trading volume of $19-$25 million.

Some experts noted that it would be nearly impossible for the country to tax cryptocurrency transactions because of the absence of regulation in place for cryptocurrency dealings.

While India is yet to release its crypto regulation scheme, recent disclosure suggests that the country may opt to regulate cryptocurrency like commodities.

However, some tax experts have advised their clients to declare their Bitcoin earnings as capital gains, making it similar to profits generated from trading shares.

BTCUSD – Hourly Chart

Key BTC Levels to Watch — December 4

Bitcoin was struck with a fresh surge of the volatility after it reached the $19,600 daily high earlier today. The cryptocurrency immediately came under heavy selling pressure but was swiftly supported by the $18,800 pivot zone.

The benchmark cryptocurrency is now trading within a wide range between $19,550 and $18600.

Meanwhile, our key resistance levels are at $19,500, $19,880, and $20,000. While our key support levels are at $19,000, $18,800, and $18,400.

Total market capital: $559 billion

Bitcoin market capital: $350 billion

Bitcoin dominance: 62.6%

Note: Learn2.Trade is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results.

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Author : Azeez Mustapha

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Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.