Government Crackdowns In China And India Threaten To Absolutely Crush The Cryptocurrency Bubble
by Michael Snyder
TheEconomicCollapseBlog.com
5/24/2018
Taxation and regulation are weapons, and governments often use these weapons to target things that they do not like. Cryptocurrencies such as Bitcoin, Ethereum, Ripple and Litecoin threaten to shatter the existing paradigm of financial control that the elite have carefully crafted, and that is making government officials all over the planet very nervous. So the latest rumblings about “government crackdowns” on cryptocurrencies in China and India shouldn’t come as any sort of a surprise. Those two governments hate anything that even smells like freedom, and so it was only a matter of time before they pulled the trigger. And the bigger the cryptocurrency bubble becomes, the more national governments around the world are likely to take action to “get it under control”.
The reason why I have always been so cautious when it comes to cryptocurrencies is because government intervention is the ever-present elephant in the room. At any time big national governments can step in and ruin the party, and that now appears to be happening in China and India. The following comes from TruNews…
China, arguably the biggest market for cryptocurrencies as many citizens aim to avoid the government-controlled economy, recently released a report that showed more than 400 fake cryptos occupying its domestic marketplace. In response the Ministry of Industry and Information Technology signaled it’s going to crack down hard, citing “certain risks that cannot be ignored” with initial coin offerings, pyramid schemes, and fraud.
Simultaneous to that bit of bad news, CoinTelegraph reported the Central Board of Indirect Taxes in India is considering an 18 percent tax on cryptocurrency exchanges, deeming the digital currencies as “intangible goods.” Last month the Reserve Bank of India formally banned domestic banks from servicing any cryptocurrency business but that failed to ebb the increase in new exchanges in its marketplace.
Let’s talk about India first. As I mentioned earlier, taxation is a weapon, and a massive 18 percent tax is being proposed on all cryptocurrency trading…
The Indian government is in talks of levying an 18% tax on cryptocurrency trading. The knowledge allegedly comes from people with a direct knowledge of the matter.
The news, as reported by Bloomberg, states that cryptocurrencies could be taxed pending their declaration as intangible goods. Even as they are on par with software with respect to their classifications, the source added that their use in illegal activities would have to be regulated using other laws.
The proposal is currently under consideration by the Central Board of Indirect Taxes and Customs and will be submitted to the GST Council after its finalization for approval.
Needless to say, such a tax would absolutely devastate the emerging cryptocurrency industry in India.
The Rest…HERE
