Why CoinSwitch Kuber’s Ashish Singhal is happy with 30% tax on crypto assets
“The taxation removes ambiguity and signals that the government recognises the crypto industry.”
By Tamanna Inamdar, 
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ETMarkets.com
“Hopefully, this is just a start and the government recognises that it works with the industry and tries to make it easier for the crypto users and more adoptable as an industry itself,” says Ashish Singhal, Founder & CEO, CoinSwitch Kuber.
The word coming out from everyone in the crypto space is well so what if we are getting taxed at 30% and crypto assets are being treated almost like lotteries? Since we are being taxed, it means we exist. Are you taking away that silver lining today?
Absolutely and I see this as a very very positive development overall. What it does for the industry is that it removes ambiguity and signals that the government recognises this industry.
The regulatory guidance on tax from the government furthers the mainstreaming of this emerging asset class, which has seen over $6 billion worth of investments from Indians. It is the gateway for Web 3.0 and we see it as a very positive step. Obviously there is a lot of work to be done here and these need to be worked out in terms of taxation, hoping that the government would listen to the industry and maybe make it at par with other asset classes like security over time as well. But this is a very welcome move from the industry perspective.
What is going to be the immediate impact because a bulk of investments are being made and money is being put into crypto exchanges. These are small-ticket size accounts in India and they are now suddenly waking up to a situation where they not only pay a TDS, but are also taxed at 30% with no offset for any losses that you make. Can this dampen the enthusiasm we have seen for crypto assets?
I hope not because crypto investments, although risky, are high reward investments and we always see that as a risky asset class. People are investing for a long term and being taxed at 30% on gains of crypto is not a bad start right. Obviously, we would want the industry to be taxed at par with securities having a long term and a short term distribution and having a follow through of tax and losses over the years as well.
Hopefully, this is just a start and the government recognises that it works with the industry and tries to make it easier for the crypto users and more adoptable as an industry itself. This is a good move to start with but obviously there is a lot of work to be done as we progress.
Have you written your mantle headline yet for the Budget?
From the crypto side, it is a first step towards adoption to Web 3.0 which is a very welcome step from this Budget.
The word coming out from everyone in the crypto space is well so what if we are getting taxed at 30% and crypto assets are being treated almost like lotteries? Since we are being taxed, it means we exist. Are you taking away that silver lining today?
Absolutely and I see this as a very very positive development overall. What it does for the industry is that it removes ambiguity and signals that the government recognises this industry.
The regulatory guidance on tax from the government furthers the mainstreaming of this emerging asset class, which has seen over $6 billion worth of investments from Indians. It is the gateway for Web 3.0 and we see it as a very positive step. Obviously there is a lot of work to be done here and these need to be worked out in terms of taxation, hoping that the government would listen to the industry and maybe make it at par with other asset classes like security over time as well. But this is a very welcome move from the industry perspective.
What is going to be the immediate impact because a bulk of investments are being made and money is being put into crypto exchanges. These are small-ticket size accounts in India and they are now suddenly waking up to a situation where they not only pay a TDS, but are also taxed at 30% with no offset for any losses that you make. Can this dampen the enthusiasm we have seen for crypto assets?
I hope not because crypto investments, although risky, are high reward investments and we always see that as a risky asset class. People are investing for a long term and being taxed at 30% on gains of crypto is not a bad start right. Obviously, we would want the industry to be taxed at par with securities having a long term and a short term distribution and having a follow through of tax and losses over the years as well.
Hopefully, this is just a start and the government recognises that it works with the industry and tries to make it easier for the crypto users and more adoptable as an industry itself. This is a good move to start with but obviously there is a lot of work to be done as we progress.
Have you written your mantle headline yet for the Budget?
From the crypto side, it is a first step towards adoption to Web 3.0 which is a very welcome step from this Budget.
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