India Places 30% Tax on Cryptocurrencies
Today, the Indian Ministry of Finance announced a 30% tax on income from cryptocurrencies and NFT’s. India’s Finance Minister, Nirmala Sitharaman, further stated that “losses from their sale could not be offset against other income,” creating a larger disincentive for the public to invest in digital assets.
Christopher Warren, Managing Partner at Warren Law Group states, “This move indicates a welcome shift in Indian policymakers’ attitude toward blockchain assets. India was considering a complete ban on private cryptocurrency holdings, which would have driven the market underground to other jurisdictions. The decision to regulate and tax blockchain assets allows investors in India (one of the largest markets on Earth) to innovate and actively compete with their global counterparts. Although the lack of offset from losses rule may cause more problems than it intends to solve, it is a step in the right direction. We can expect the U.S. Treasury Department and the Securities and Exchange Commission to continue developing infrastructure, regulations, and tax regimes that affect cryptocurrency investors and advisors. Cryptopreneurs with 1M+ in coin, Broker-Dealers, Investment Advisory Firms, Venture Capital, and Private Equity firms should be maneuvering their businesses to protect their crypto investments and business models.”
If you have obtained a large crypto portfolio or are actively involved in building or investing in the cryptocurrency business, it is important you create and maintain the right corporate structure and governance to protect your assets. Schedule a complimentary consultation with the attorneys at Warren Law Group by calling (866) WLGROUP or email firstname.lastname@example.org.