Indian Authorities Will Tax Crypto Players Rather Than Ban The Industry

According to various media reports, the Indian authorities have disclosed that it is more interested in earning tax from crypto players instead of banning the industry out-rightly. But, the sources also revealed that the authorities wouldn’t classify it as an asset category despite taxing the industry.

Good News For Indian Crypto Players

The news comes as a significant relief for Indian crypto players since none of them could predict the government’s decision until now. They were even more afraid when the head of India’s apex bank, Shaktikanta Das, said, “we are worried about the digital asset space, and we have made our opinions known to the federal executives. However, many people are requesting that they put out warning notices.” 

“But the apex bank won’t do that. Everyone is free to make their investment decisions without any interference. We can only tell them to perform thorough research and be convinced about any investment opportunity before investing in it,” Das concluded.

Former RBI Head Wants Crypto To Be Regarded As An Asset Class

Even though Das is overly concerned about the possible crypto legalization, one of his predecessors has a contrasting opinion. Mr. R. Gandhi, a predecessor to Das, opined that the authorities should classify virtual currencies as an asset category and perform oversight functions based on current exchange laws. He predicted that digital assets would soon become so widely adopted that they would be mainly used to perform settlement transactions.

While there was no insight regarding digital currency policies in India, the country’s digital asset space has been thriving. A new survey showed that India ranks second among countries with the highest crypto adoption worldwide. Also, separate data revealed that Indian crypto adoption surged by almost 21,000% within 12 months.

The reports were proved right as Indian-based crypto platforms experienced peak activities during the bullish period of the crypto industry, which lasted till May this year. Also, most crypto exchanges raised sufficient amounts to exceed their target during their fundraising rounds this year.

Coinbase Plans Senior Note Offering For $1.6B Fundraising

Meanwhile, the US-based crypto exchange, Coinbase, has announced plans to raise $1.6B through a senior note offering. Part of the announcement revealed that the purpose of the funds is to improve its offerings (products, technology and investments) towards better delivery for its clients.

However, the company remarked that some factors would determine the closure of the offer. It also noted that Coinbase Inc. (a subsidiary of the Coinbase exchange) will act as guarantor for the $1.6B debt. However, the exchange and the original purchasers will determine the other terms and conditions of the offer.

Coinbase revealed that only well-known institutional investors would be offered and sold all guarantees of the offer, which would be done via a private offer. The exchange continues its expansion efforts despite a threat by the sec last week over the impending launch of its lending platform. The exchange’s CEO reacted strongly to the warning notice citing other platforms providing similar offerings.