India is one of a series of countries that has recently backtracked on their strong anti-crypto stance. India's finance minister announced that she would allow crypto ownership and announced a 30% tax on any income from the transfer of crypto. That's a hefty rate but at least gives clarity on the legal status of crypto. Therefore, insiders see the statement as good for crypto adoption in the country, which has a potential user base of over a billion crypto owners.
The CEO of WazirX, one of India's largest crypto exchanges, says of the news, "India is finally on the path to legitimising the crypto sector."
India's sign that they won’t ban crypto any time soon is important. So is the announcement, in the same statement, that the country is going to introduce a digital rupee. Many countries are working on this: China is at the most advanced stage of introducing its own Central Bank Digital Currency (CBDC). Although many crypto enthusiasts are not exactly fans of CBDCs, their introduction is nevertheless bullish for crypto: it makes the threshold for integrating crypto into everyone's lives much lower.
Developments in Russia and Indonesia
Like in India, lawmakers from several countries have been revisiting previously expressed negative stances over the last week. In the Soviet Union, the Central Bank called for a complete ban on crypto, just over a week ago. The Russian government, through Putin, quickly backtracked on that statement.
Indonesia has also issued a statement that they will allow trading in Bitcoin, Ethereum and a long list of other coins. However, some coins are excluded from trading. For example, Doge is allowed to be traded, but Shiba Inu is not. Like India, Indonesia is a country that has often expressed negative legal stances on crypto.