Privacy coins were in the social media spotlight after India announced that it was imposing a 30% tax on income from cryptocurrencies and other digital assets.
Finance minister Nirmala Sitharaman made the announcement Tuesday while presenting the federal budget.
‘Got a Problem With That, Tax Evader?’
She also said that the central bank will introduce a digital currency in the next financial year using blockchain and other supporting technology.
The news contrasted from the situation in November when the Indian government announced that it was introducing a bill in its Winter Parliament Session to ban private cryptocurrencies.
Several commenters on social media reacted angrily to news of the tax.
“Translation: ‘We can’t control it or ban it, so where going to confiscate a large portion of its value in the hands of the people. Got a problem with that, tax-evader?'” one commenter said on Reddit.
“I’d rather it be banned and the people of India continue to trade crypto tax free,” another responded. “Taxes and crypto don’t mix.”
“This is disgusting,” one said. “Can’t let the people get a better standard of life can they.”
On Twitter, one user was surprised that the tax rate on cryptocurrencies is twice the tax rate on corporations.
And others on social media suggesting using so-called privacy coins like Montero, Zcash and Dash.
“Not that I would ever do it,” one person said on Reddit. “But, THEORETICALLY, could I used Monero to avoid paying taxes on Crypto?”
“Shall we start a riot and just buy sh@t loads of Monero?” another suggested.
“Go on, do it bro,” one commenter responded.
‘Good Luck With That, India’
Privacy coins are popular because they enable the user to control what information they choose to share with companies and organizations.
“Most recently, privacy coins have attracted increasing attention in the public debate as non-privacy cryptocurrencies, such as Bitcoin, do not satisfy some users’ demands for anonymity,” according to a study last year by the Journal of International Financial Markets, Institutions and Money.
However, privacy coins have also become popular for ransomware payments, criminal transactions on the dark web, and money laundering.
The Journal study noting that “non-privacy coins may be the first choice for criminals who might prefer cryptocurrencies exhibiting both a high level of anonymity and liquidity.”
“Another reminder that advocating the use of Monero to EVADE taxes will get your post removed and lead to temp bans,” another commenter said.
Another Reddit chat considered a provision to prohibit private cryptocurrencies in India.
“Private cryptocurrencies are the first and foremost to be targeted by any nation, even the western ones will be trying to crack down on them,” read another comment. “It’s only logical. Invest at your own risk, guys.”
“So they will punish people that are using Monero but when you use Monero your transactions are untraceable lol,” one person said. “Good luck with that India.”