VELLORE: Cryptocurrency investors in the State say the decision to bring digital currency under the tax ambit may help further grow the sector, which has already reached even rural parts of Tamil Nadu.
CG Sanjeevi, a Coimbatore resident, said he stopped crypto trading two years ago due to uncertainties in government policy. “If there was clarity, I would have continued investing, and made profits, despite the 30 per cent tax,” he said. A few investors said the taxation also means recognition of the industry by the Centre, and it has given them confidence to resume crypto trading.
Though the tax is high at 30 per cent, crypto exchanges are happy the government has decided against a ban. Arjun Vijay, co-founder of Chennai-based Giottus Cryptocurrency Exchange, says a blanket ban on would have left the Indian industries out of the Web3 era.
“We missed the internet age. Now it is being re-written and we can’t miss it,” he said, adding that the government should consider postponing the tax deduction at source by a few years to give a reprieve from tax-related paperwork.
Shuaib Hussain V, director of a fintech company in Tirupattur, said, “Crypto has penetrated remote parts of the country, unlike stock market trading. The government should reconsider the tax bracket. Also, the announcement that loss can’t be carried forward is unfortunate.”