Negative Trends in the Asian Crypto Scenario: From China to India to Thailand

Is banning and high taxation becoming a trend in the Asian crypto scenes?

Even with the growing popularity of cryptocurrencies all over the world, it seems that not every country is welcoming enough towards accepting cryptocurrency and digital assets as easily as traditional currency. With China banning cryptocurrency and India putting shockingly high taxation on digital assets, it is time to question what are the reasons behind such negative trends in the Asian crypto adaptation. Some of the governments are set on thinking that cryptocurrency is only used for illegal things and also, it’s coming from illegal sources. Although not all governments are moving to ban crypto, some are also increasing high taxes, as many are looking into how to regulate digital currency, cryptocurrency. Let’s see here how some of the Asian countries are acting concerning crypto.

Crypto Situation in India

India’s union finance minister Nirmala Sitharaman brought cryptocurrency bills for the future of cryptocurrency in the country. The bill was not introduced in the winter and Budget sessions as the Centre aimed to hold more parleys to build consensus on the regulatory framework and prohibit all private cryptocurrencies in India. The Budget 2022-23 has proposed a 30 percent tax on the transfer of digital assets and 1 percent TDS on payments towards virtual currencies beyond Rs 10,000 in a year. Although many crypto investors value digital assets on a different level, Indian authorities have viewed it as winning from a lottery, casinos, gambling, or betting, which attracts over 31.20% GST on the entire value. Trading in these assets has increased manifold with cryptocurrency exchanges being launched. However, India did not have a clear policy on either regulating or taxing such digital asset classes.

Crypto Scenarios in China:

China’s cryptocurrency ban is part of a new trend in Chinese economic policy toward greater state intervention. The People’s Bank of China banned all cryptocurrency transactions. The government said cryptocurrencies are facilitating financial crime as well as posing a growing risk to China’s financial system owing to their highly speculative nature. China prohibited financial institutions from engaging in any crypto transactions and banned all domestic crypto mining. The main reason behind this is to combat capital flight from China.

Crypto Conditions in Bangladesh:

Bangladesh, like a few other Asian crypto countries, has explicitly banned the usage of Bitcoin and other crypto-currencies. Cryptocurrency has been declared illegal by Bangladesh Bank. Transactions on any virtual currencies are not approved by Bangladesh Bank or any other regulatory body. Because of these, violations of anti-money laundering and anti-terrorism financing laws are happening. No virtual currency or cryptocurrency is approved by Bangladesh Bank. The central bank of Bangladesh does not allow crypto-trading as it goes against the country’s financial regulations. If found in violation of the law, crypto traders can face years of imprisonment in this Asian nation.

Crypto Scenes in Thailand:

Thailand has declared to ban the use of cryptocurrencies as a payment option for commodities and services from April 1. The country is concerned that cryptocurrencies could disturb the economic stability and fiat position by letting crypto assets be used for daily purchases. The Bank of Thailand controls the use of digital assets as a medium for payment. Thailand authorities are aiming to curb cryptocurrency to stop the misuse of cryptocurrencies to fund illicit activities, cyber theft, personal data leaks, etc.

Crypto Whereabouts in Iraq:

The Iraq Central Bank stated that currency traders who carry out transactions in cryptocurrencies will be punished by penalties cited in the country’s anti-money laundering law. The use of cryptocurrencies is prohibited. Money laundering rules apply to those who use cryptocurrencies. Under the Financial Crimes Enforcement Network, crypto miners are considered money transmitters. So, they may be subject to the laws that govern that activity.

On a conclusive note, it can be said that cryptocurrencies will definitely need a lot more convincing to be accepted by most Asian countries as they are viewing it as more of illegal means and less of an alternative currency.