High taxes on crypto will disincentivise compliance

Taxes are best-placed to meet their objective if they incentivise compliance

The Indian crypto and blockchain industry has been a standout sunrise sector of 2021, attracting venture capital investments worth $638 million. The path India takes can have a profound impact on the world as well. With a high talent-density, robust public digital infrastructure, and growing internet adoption, we are uniquely positioned to shape the global crypto landscape, and internet’s future.

But there is competition. From the Asian financial hubs of Dubai and Singapore to the United States, regulators realise the crypto ecosystem can be harnessed to strengthen and deepen the reach of legacy financial systems.

With the Finance Bill (2022),