India parliament member, Sushil Kumar Modi, Has Suggested a 50% Crypto Tax Rise

The Indian crypto market is killing by regulators

The Indian Finance Bill 2022 with new 30% crypto tax rules was approved by Rajya Sabha, the upper house of the Indian parliament, to make it a law today that will come into effect starting on April 1. Apart from that, traders cannot offset their losses against profits and each trading pair will be considered independently for the tax deduction.

After that, cryptocurrency exchanges in India have seen trading volumes drop between 15% and 55%. Domain traffic on crypto exchanges has also fallen by 40%. WazirX, one of the country’s most popular crypto exchanges, saw trading volume go down to less than $100 million from $208 million before the month began.

Despite all those negative impacts, senior MP of the ruling party Sushil Kumar said that the country should consider taxing cryptocurrency gains by as much as 50%.

In an interview with Forkast, he stated that the country should discourage investors from investing in cryptocurrencies and other digital assets. He went on to say that the country should consider taxing cryptocurrency gains by up to 50%.

Analysts also believe that liquidity could be affected as a 1% tax deducted at source law comes into effect from July 1.

Coinbase will invest in India

In a company blog post on Monday, Coinbase founder Brian Armstrong stated that the company wants to increase IT hiring and investments in India.

“Coinbase Ventures has already invested $150 million in home-grown Indian technology companies in the crypto and web3 space, and is constantly identifying new opportunities to help Indian founders scale,” Armstrong wrote.

Its corporate venture arm Coinbase Ventures has backed crypto unicorns, CoinDCX and CoinSwitch Kuber.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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