- India’s NSDL and CDSL will control the maintenance nodes for the new decentralized network
- Elsewhere, an indirect tax council in India is considering a 28% tax on crypto-related activities
The National Securities Depository (NSDL), based in Mumbai, celebrated its 25th anniversary late last week and launched a Blockchain-based or distributed ledger technology (DLT) platform for monitoring debt securities.
The platform was created as a product of collaboration between the NSDL and the Securities and Exchange Board of India (SEBI) to enhance securities and covenant oversight. In fact, it should help bring more clarity and discipline to the market.
It will be expanded to include other regulators
The DLT platform will function by providing an immutable trail of transactions and asset encumbrances between issuers and custodians of debt securities. India’s two custodians, NSDL and Central Depository Services Ltd. (CDSL) by SEBI, will be entrusted with two nodes to maintain this decentralized network. In the future, however, more regulated bodies would be included in the ecosystem and thus the nodes would be established.
SEBI Chairman Madhabi Puri Buch stated that blockchain was chosen for its underlying transparency, but criticized the expensive nature of this technology. She also observed the anonymity associated with interacting on such a network, noting that regulators in the country are dissatisfied with this trait.
“This is the biggest differentiator between private DLT manifestations and what we commonly refer to as central bank digital currencies when not intended to use this aspect of the technology as we do not desire anonymity.” said book.
NSDL is the oldest custodian in this Asian country and controls a market share of up to 89% in terms of securities assets value.
The SEBI last year mandated that custodians use blockchain technology infrastructure to arrange monitoring and collateral. All data previously logged into centralized databases is now cryptographically stamped and added to the DLT platform.
Indian users could expect a 28% crypto tax
According to a new report by CNBC-TV18, The body responsible for making indirect tax decisions, the Goods and Services Tax (GST) Council, is considering introducing a 28% GST on services and activities related to crypto assets.
The proposal was reportedly tabled by an official committee mandated by the council and the matter is expected to come up at the next council meeting.
Source: Crypto News Deutsch