Shortfalls Faced By Crypto Industry Due to Fall in its Price.

 The young generation is always keen to use advanced technologies. The digital world is specially dear to young people. But, today after investing money in the block chain, people find themselves in deep trouble as they do not know how to recover the money. Today, this is more because the crypto economy is not doing well and cryptocurrency is almost an everyday   fintech news in India. The block chain system is going into a slump and the crypto currency values are lower every day.

Crypto in India

Now, many investors are smart enough and they do not invest in Indian crypto but invest in the worldwide crypto exchanges. This way they evade paying the TDS. However, Indians have always been curious about crypto currency. The doubt became more profound when the crypto world showed signs of the up and down in the market every day that affected businesses heavily. Plus, the Indian government is making step-by-step scrutiny of crypto exchanges and investments in India. RBI in India has strict rules and regulations that check transactions in the crypto world.

RBI of India does not believe in native crypto currencies because there are many fraud crypt currencies that are doing rounds in the block chain. Today, there are more than twenty thousand crypto currencies that are circulated in the block chain. But the vigilance in the block chain system is weak. Many times governments have found loopholes and money laundering cases via crypto.

Types Of Crypto currency Tokens

In the fintech news worldwide, the most common cryptocurrency is bitcoin and ether. These are the native cryptocurrencies. The others are different types of the crypto tokens like utility tokens that provide for payment of services, governance tokens for management and governance, safety tokens and reward tokens, and also non-fungible tokens called NFT for digital certificates of assets. There are also stablecoins like Tether which is backed by fiat currencies.

Banks In India And Cryptocurrency

Because the RBI in India is so skeptical about crypto, the banks in India have tight scrutiny on crypto exchanges. Plus in India, the sale of cryptocurrencies is taxed at the rate of 30% and traders pay extra 1% TDS for crypto transactions.

However, this is also true that rules and regulations for crypto are flouted many times in the blockchain system. The CGST authorities in India have recovered in March 2022 large sums of crypto exchange values (almost amounted to Rupees 81.54 crores in GST) that have been taxed and that the crypto traders had evaded from paying. The new regulation and amendment list for cryptocurrency rules are compiled in Cryptocurrency And Regulation of Official Digital Forex Invoice 2021 which was scheduled for a presentation in the parliament in December 2021.

The WazirX cryptocurrency cases

Now, there are many companies that went through problematic cases. Like the WazirX cryptocurrency problem. In March 2022, CGST had recovered Rupees 95.86 crores from eleven crypto traders. CGST said that the crypto traders had evaded Rupees 81.54 crores in GST. Again in August 2022 ED department froze Rupees 64.67 crores of money from Zanmai Labs Pvt. Ltd.

India And Cryptocurrency

The Supreme Courtroom lawyer, N.S.Nappinai said that stakeholders today oppose any type of government rules and regulations. This attitude of the stakeholders should be changed. But, the claims of the stakeholders are different. The stakeholders, on contrary, think that India has strict financial rules that make investments difficult, especially in the blockchain system.

The Flexible Character Of Cryptocurrency

Cryptocurrency is a decentralized system. Many cryptocurrency companies have faced shutdowns as different fintech news sources have claimed. The transactions in the blockchain world are safe but still, investors look towards blockchain with doubt. As a result, the investment in blockchain is shrinking recently. When the cryptocurrency was first introduced it became very popular. But, with the changing value of cryptocurrencies, crypto investors are now not sure how to recover their money. Many companies have also become bankrupt after investing in the blockchain.