Satvik Vishwanath on Indian Finance Minister’s Decision
Satvik Vishwanath, co-founder of Unocoin, criticized Indian Finance Minister Nirmala Sitharaman for not proposing any changes in the taxation of cryptocurrencies in the budget for 2024. According to Vishwanath, this decision reflects the government’s view of digital assets as akin to gambling, rather than a serious economic sector.
Current Tax Regime
Under the current tax regime implemented in 2022, profits from cryptocurrencies are subject to a fixed 30% tax, with an additional 1% tax on income from crypto transactions. Members of the crypto community have raised concerns that these strict taxes are leading to a decrease in trading volumes on local exchanges.
Unwillingness to Recognize Cryptocurrencies
Vishwanath believes that the lack of changes in tax policy shows the government’s reluctance to accept cryptocurrencies as a legitimate business sector, overlooking the potential economic benefits they can bring. He fears that the strict tax policies could impede the growth and innovation of the crypto industry in India, leading to missed opportunities for investment.
Call for Change
Cryptocurrency companies in India have been advocating for a softer tax regime, but no changes have been implemented thus far. Vishwanath and others in the industry are hopeful for a revision of tax policy in the future to create a more conducive environment for the development of digital assets in the country.
