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Crypto Tax And TDS Reduction Key For Survival, Says CoinDCX And WazirX Founders – Crypto News

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2 years ago

January 31, 2024

Dripp

The Indian government burdened the crypto industry with heavy taxes and heightened scrutiny in the last 2 years, making people feel hesitant or completely move away from trading and investing in crypto. Top crypto exchanges CoinDCX and WazirX founders have expressed concerns over the almost shadow crypto ban in India and urged a reduction in crypto tax in the 2024 budget.

CoinDCX and WazirX Urges Crypto Tax Relief

Sumit Gupta, CEO of CoinDCX, on January 31 said a strategic focus on key measures is crucial for crypto and Web3 growth in India. He asserts lowering tax-deducted at source (TDS) from 1% to 0.01% and reducing the crypto tax rate to 30% isn’t just policy reform. “It’s a catalyst for innovation and growth.”

He also stressed upon establishing a robust self-regulatory body for the crypto and blockchain sectors. It will help build trust, set standards, and empower Web3 participants. He believes these changes are critical for the survival of India’s crypto industry.

“As Web3 builders, we face the prospect of another year without a level playing field. This is about supporting the Indian Web3 industry to grow with confidence, creating opportunities for millions of Indians to engage in a thriving digital economy,” he added.

The trading volumes on India’s crypto exchanges have declined massively in the last two years, coupled with the worse bull market. Crypto investors demand a stable and trustworthy environment to thrive and hope for some relief on the tax front in the Union Budget 2024.

Nischal Shetty, CEO of WazirX, said the entire Indian crypto community put forward requests to the government. These are TDS reduction to 0.01%, capital gains profit taxed under existing slabs, and allow setoff of losses. He claims taxation is one of the major limiting factors for the crypto adoption and growth in India. Also, it makes the ecosystem uncompetitive with global peers.

Also Read: Reason Why There Won’t be an Economic Survey This Year

Is There Any Relief For Crypto in Budget 2024?

RBI governor Shaktikanta Das has reiterated his ant-crypto stance, saying that there has been no change in the central bank’s position. At the World Economic Forum in Davos, Shaktikanta Das warns crypto investors about the risks and potential harm amid a lack of regulatory framework.

Moreover, the Financial Intelligence Unit (FIU) under the Finance Ministry issued a show cause notice to nine offshore crypto exchanges. Also, the Ministry of Electronics and Information Technology (MeitY) blocked URLs of crypto exchanges Binance, KuCoin, Huobi, Kraken, Gate.io, Bittrex, Bitstamp, MEXC Global, and Bitfinex.

India led the development of a common regulatory framework for crypto assets in the recent G20 presidency, where the crypto sector emerged as a key topic. Industry executives propose changes with more favorable tax treatments for virtual digital assets (VDAs) to ensure expansion and compliance with global standards.

Also Read: Key Changes Expected By Crypto Executives