As per the local news report, the 30% tax on cryptocurrency profits in India turned out to be a boon for local crypto exchanges such as CoinSwitch and WazirX.
While it might seem to hurt the pockets of investors as a tax increase, people see it as a certainty that the government is signalling it as a legal asset.
Wazirx, India’s largest crypto exchange, and its competitor Coinswitch Kuber saw daily sign-ups spike by roughly 30% and 35%, respectively.
“Investors are seeing a lot of clarity and visibility now with taxation announced in the budget, earlier, people were on the sidelines, wondering if cryptos were allowed or not,” said WazirX co-founder, Nischal Shetty.
The Indian government has neglected to draft crypto-sector regulations till now, leaving the business in limbo.
30% taxation has been levied on cryptocurrency trading profits by the government in this budget session.
The Reserve Bank of India, on the other hand, has been a vocal critic of cryptocurrencies, with Governor Shaktikanta Das comparing cryptocurrencies to the 17th century Dutch tulip bubble and labelling them a threat to the country’s stability.
Shaktikanta Das’s front about crypto earlier wasn’t correlating with that of the government, but Nirmala Sitharaman said that government and RBI are on the same page on crypto and other issues.
