India’s tough stance on cryptocurrencies might be affecting the nation’s ability to become a tech and blockchain hub after all. According to a report from Yogita Khatri, a journalist at TheBlock, the Blockchain and Crypto Assets Council (BACC) has announced the closure of the organization after just five years of its existence.
Furthermore, a member of BACC, Sathvik Vishwanath, co-founder and CEO of Indian crypto exchange Unocoin, told TheBlock that the Internet & Mobile Association of India (IAMAI), the parent firm of BACC, has revealed that it is dissolving BACC to focus on non-crypto sectors.
Crypto in India continues to weaken
The crypto community in India continues to weaken as the government recently introduced taxation of 30% on crypto profits in the nation, followed by a 1% TDS on all cryptocurrency transactions. The taxation caused the trading volume on Indian exchanges to dry up, while the introduction of the TDS rule on July 1 further caused widespread disruption of crypto-related activities in the nation.
A recent report from the UNCTAD or the United Nations Conference on Trade and Development, the intergovernmental organization aimed to promote the interests of developing states in world trade, said that developing countries have the most crypto investors, but there are several risks associated with such a surge in activities. Between September 2019 and June 2021, crypto-related activities surged by 2,300%.
A natural frontrunner
Interestingly, Binance CEO Changpeng Zhao recently stated that India is a “natural frontrunner for Web3 startups.”
“India is a huge market, as well as a leader in technology, and therefore will be a natural frontrunner for web 3.0 startups. We are looking forward to working with outstanding startups in India,” Zhao stated.
According to Zhao’s statement, Binance will continue to invest in Indian startups after calling it a hub of technology and a very important country for the global adoption of cryptocurrencies and blockchain technology.