The Ministry of Finance in India has defined new rules for the crypto sector. According to the publication by the government, losses and profits will be viewed separately. This means that traders can't set off losses incurred in a certain digital asset against income from another one.
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The policy is expected to come into effect on April 1. Crypto experts find that the latest rules by the government will hold back active participation in crypto.
Previously, the Indian government proposed to impose a crypto tax of 30%. Entrepreneur, co-founder of the platform WazirX, Nischal Shetty, commented on the proposed rule on Twitter, calling it unfair. He said discouraging crypto discourages innovation.
Explaining it, Shetty brought an example when someone invests 100 rupees in one Coin and 100 in another. If the person makes 100 rupees profit in Coin 1 and loses 100 in Coin 2, he will be required to pay the 30% tax for Coin 1 profit, not being able to offset Coin 2 loss. The total holdings of the person will be 170 Rupees.
S hetty said Indian innovators need a bit of regulatory support to zoom in on the sector.