Telangana IT Minister Backs Crypto Industry, Offers To Take Up Concerns With Centre

With the crypto space in a churn, Telangana Information Technology (IT) Minister KT Rama Rao has offered to lobby for the industry’s cause with the government.

“One of the things that I want to do, my principal secretary (Jayesh Ranjan) has been on top of this, is we want to take it up with the Government of India and understand what exactly their concerns are and we also want to play that role being a sort of advocate, partner for the industry,” said Rao in a podcast with comedian Tanmany Bhat.

He also took potshots at the government over the ‘ambivalent’ policies and sought more clarity on the laws surrounding the ecosystem.

Citing the exodus of crypto entrepreneurs to Dubai, he said that he would want to speak with the founders and convey their issues to the central government.

“I would be more than happy to work with the crypto industry, leaders who are migrating to Dubai and other places, to sit with them, to have a conversation with them and go and meet the Finance Minister, Commerce Minister and IT minister and tell them that we cannot afford to have this,” Rama Rao asserted.

A host of companies have moved their base to Dubai in the last few months over concerns about stringent norms and high taxes.

The crypto startups have also been marred by a slew of regulations such as the imposition of 30% tax on income from virtual digital assets (VDAs), which was introduced in Budget 2022. The government also announced a 1% TDS on transactions of more than INR 10,000, which came into effect from July this year.

Meanwhile, crypto exchanges have been under tremendous stress owing to the ongoing market volatility in the crypto space which has wiped off billions of dollars in investor wealth. The anticipation of a recession has also spooked crypto investors who have been on a withdrawal spree.

Earlier on July 14, industry body Internet and Mobile Association of India (IAMAI) also announced that it would dismantle its Blockchain and Crypto Assets Council (BACC) owing to the ‘uncertain regulatory environment’ for the crypto space in the country.

While companies such as Vauld have filed for a moratorium, other startups such as CoinSwitch Kuber have suspended deposits and withdrawals.