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India's approximately 39 million crypto users hold $2.1 billion in assets, yet the central bank continues to urge banks to avoid exposure
Svmuu News: India imposes a flat 30% tax on gains from virtual digital assets, along with an additional 1% withholding tax on the transfer amount. Approximately 54 crypto service providers in the country have registered with the Financial Intelligence Unit, serving 39 million verified users who collectively hold about $2.1 billion in assets. The Reserve Bank of India (RBI) has repeatedly indicated to Parliament that it favors a largely prohibitive policy toward private cryptocurrencies and stablecoins, and has urged banks to avoid related exposures to protect financial stability. The long-promised cryptocurrency bill has yet to be finalized. At the same time, Indian government agencies are using permissioned blockchain technology in non-trading scenarios. AIIMS Delhi uses blockchain to manage faculty recruitment records; the Cotton Corporation of India tracks bales of cotton through a blockchain-based identification system; and the aviation regulator, the DGCA, is building a digital service platform linked to blockchain.
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