Six months on, crypto tax leading to siphoning of India's wealth: Experts

The crypto industry is largely unregulated in India, and the central government, along with the Reserve Bank of India (RBI), have repeatedly refused to make cryptocurrencies legal

The provision of a 30 per cent tax on the transfer of cryptocurrency has facilitated the siphoning of India's wealth to foreign countries, experts told Business Standard. October 1 will mark six months of the rule's implementation, which finance minister Nirmala Sitharaman introduced in her Budget 2022 announcement.

"Since the imposition of taxes, India has seen a significant decline in trading volume and an exodus of crypto investors to international exchanges based on the belief that these exchanges do not cooperate with Indian authorities, thereby allowing individuals to save 30 per cent in taxes," Gaurav Mehta, founder of Blockchain auditing