At the Peer-to-Peer Financial Systems Workshop 2024, a study on crypto taxation was presented, analyzing the existing situation in India. Legal practitioner Amit Kumar Gupta argued that the Indian government's high taxes on crypto operations aim to displace these technologies from the country.

Crypto Taxes in India

India's crypto law requires a 30% tax on crypto profits, effective from April 1, 2022. Gupta noted in an interview with Cointelegraph that users cannot offset their losses, and a tax is also levied on every crypto transaction.

Lack of Understanding Blockchain Technology

Gupta describes the tax regime as 'draconian,' indicating a lack of understanding by authorities. He stated that the government views cryptocurrency as being used for money laundering and terrorist financing.

India's Potential in Web3 Development

Despite regulatory uncertainty, Web3 projects development continues domestically. Rohit Mohan, CEO of NC Global Media, highlighted that Indian developers are driving innovation and emphasized that education will be a crucial factor for crypto success.

Although India's crypto industry faces challenges with stringent taxation and insufficient regulation, the country's potential in blockchain and Web3 remains high. Success will require joint efforts and educational initiatives.