During a session of the India parliament on Monday, Pankaj Chaudhary, the country’s Minister of State for Finance, stated that a raid by the Narcotics Control Bureau, Central Board of Indirect Taxes, and Customs had uncovered that cryptocurrency was being used as payment in drug trafficking.
Authorities uncovered 2.2 crores (roughly $286,000) in cryptocurrency used by criminals to settle narcotics sales.
Chaudhary stated that the government has taken a number of tough steps to combat such illegal acts. He stated that law enforcement officers are being taught on advanced cyber and forensic technology, as well as how to collect evidence digitally.
He also discussed the rapid rise of blockchain and Web3, as well as how the government is paying greater attention to new technologies.
According to Chaudhary, the technology associated with Metaverse/Web 3.0 are constantly emerging. The government is aware of the advent of new technologies and the rapid expansion of emerging technologies such as Artificial Intelligence, Blockchain, Drone, Augmented Reality/Virtual Reality, Metaverse, Web 3.0, and so on.
This follows India’s crypto tax law, which went into effect on April 1, 2022. Recall that the country’s Finance Minister, Nirmala Sitaraman, stated during her 2022-2023 budget address that crypto traders will be subject to 30% tax with 1% tax deducted at source (TDS) on digital asset transactions beginning July 1.
Crypto losses, according to the rule, cannot be deducted from other revenue in the same year. The government’s tax law has harmed bitcoin trading activity in India.
According to a poll done by blockchain intelligence business CREBACO, crypto transaction volume in the nation has plummeted by 55% since the tax law went into force.
The data also reveals that on March 31 and April 1, transaction volumes on the WazirX crypto exchange fell from $918,515 to $524,865, and on CoinDCX, from $249,311 to $157,460.
As India maintains its strict tax regulations, the nation intends to develop its own Central Bank Digital Currency (CBDC).
Sitharaman announced last month that India will launch the CBDC before the end of the year.