Argentina Bans Crypto Trading While India Deliberates a 28% GST Tax

Argentina bans crypto May

While the world seems to be beginning to accept crypto and all that comes with it, some countries are doing their best to stray further away from it; Argentina and India are the latest addition to that lot who have pushed their citizens away from crypto using extreme methods.

Argentina Bans Crypto

As per the instructions released by the Central Bank of Argentina, financial institutions have been directed to no longer facilitate any kind of crypto-related operations for their clients.

Furthermore, any digital asset that is not regulated or recognized by the Central Bank is also included in this directive.

The reason that the Central Bank gave for taking such a drastic measure was the same old reasons cited by any and every government for standing against crypto – Volatility and crypto crimes.

The Bank said that the risks associated with crypto, including operational disruptions and money laundering to facilitate terrorism, as well as the lack of safeguards, are a few other reasons why they have banned crypto in the country.

While other countries such as India have revoked similar bans on crypto in the past, it is not sure whether Argentina will be headed down that path for now. 

India Increases Taxes

Talking about the country that banned cryptocurrencies a few years ago, India today has become a prime center when it comes to crypto.

According to Chainalysis 2021 Global Crypto Adoption Index, India was the second most prominent nation concerning participation in crypto.

Crypto Adoption Index

However, since March 2022, the state of crypto has been in limbo in the country. Finance Minister Nirmala Sitharaman announced a 30% tax on crypto-associated income while declaring no law on digital currencies.

Now following that announcement, it was revealed a few days ago by CNBC-TV 18 that the country’s Goods and Service Tax (GST) Council might levy a 28% tax on all cryptocurrency-related activities.

While it is yet to receive a formal confirmation, investors in the country are already dejected since regulations as such make it difficult for a crypto business or trader to flourish in the country.

But there are other countries accepting crypto with open arms despite not having as much usage as other countries.

El Salvador – The First To Accept Crypto

El Salvador became the first country on the planet to make Bitcoin a legal tender back in September 2021 and set a precedent for crypto enthusiast nations.

Although it received backlash from the International Monetary Fund (IMF) to repeal the law and was even threatened with the cancellation of loans if it did not budge, El Salvador stood unbothered.

Thus, inspired by El Salvador, Mexico too looked to make Bitcoin a legal tender, with Senator Indira Kempis proposing a crypto law for the same soon.

And following them, Switzerland’s Lugano also decided to make Bitcoin a legal tender to facilitate tax payments as well as daily transactions.

In conclusion, while the process is slow, crypto is becoming mainstream, and with the support of such countries, others who oppose it might overturn their decision too.

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Working as a journalist and editor in the crypto industry for over a year now has made me better understand the responsibilities that entail this profession. As I continue to learn and grow, my experience as a market analyst, news writer, and interviewer has enabled me to better understand cryptocurrencies, the world of NFTs and Metaverse, and everything that comes with web3. With a keen interest in Decentralized Finance and the political impact of this industry, I strive to absorb as much knowledge as I can and share it with others.