In a move that could have a negative influence on crypto adoption in India, the government said that its pending tax law for virtual digital assets will not allow profits on one coin to be offset by losses on another.
Instead of allowing investors can use earnings from one token to offset losses from another, India’s government proposes to tax profits from all coins at a rate of 30%.
“This is damaging for India’s crypto business and the millions who have invested in this burgeoning asset class,”
Ashish Singhal, founder of crypto exchange CoinSwitch Kuber, said on Twitter.
The high taxes on crypto trading in India may cause investors to avoid the sector in favor of traditional instruments. Of course, such as the stock market and mutual funds, which have more lenient laws and lower tax burdens.
“Discouraging crypto Implies discouraging innovation,” WazirX founder Nischal Shetty stated on Twitter.
“I hope the Indian government listens to the concerns of the youth and guarantees”
“that the crypto business in India remains competitive.”
The regulation on crypto taxes in India is due to take effect on April 1st.
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