India’s Crypto Tax Policies: A Barrier to Innovation?
India’s hefty 30% tax on cryptocurrency gains is stirring up quite the conversation about its possible impact on innovation in the space. While the government’s intention is to regulate and rake in some cash, there’s a loud chorus of skeptics who contend that these sky-high taxes could choke growth and send talent packing to friendlier shores. Let’s unpack how India’s crypto tax situation stacks up against the rest of the world, the potential rise of an underground economy, and lessons from more crypto-enthusiastic countries.
Current Tax Framework: 30% Tax and Its Implications
The tax regime in India, set forth in the 2022 Union Budget, dubs cryptocurrencies as “Virtual Digital Assets” (VDAs). This comes with a flat 30% tax on…
