Coinswitch Inducts Non-Crypto Products
India’s government slapped a flat 30% tax on all crypto income from April last year and then imposed a 1% tax deducted at source on transactions above US$122.
Not only that, but crypto traders are not permitted to offset losses against gains elsewhere, and despite all of the taxes, the government has yet to clarify the legal status of digital assets.
India’s CoinSwitch cryptocurrency exchange, which claims to have over 19 million registered users, has responded to these challenges by introducing its first non-crypto range of investment products.
Ashish Singhal, co-founder and CEO of CoinSwitch, revealed a few plans for 2023. According to Ashish Singhal, CoinSwitch’s 2023 roster includes seven new non-crypto products, including fixed deposits, ETFs, mutual funds, stocks, bonds, and U.S. equities.
CoinSwitch sees crypto as an investment class that is offered alongside other assets, to help users build a diversified portfolio.
CoinSwitch aims to reach 100 million active investors in the next four years.
CoinSwitch applauded the government’s intention to implement traceability and taxability. However, the current structure must be refined in order to make the taxation policy progressive.
Singhal went on to say that the Indian Central Bank Digital Currency (CBDC) could coexist with cryptos and be successful in the future. CBDCs and crypto assets serve different purposes in India, and one does not replace the other. CBDC represents fiat currency digitization and is an evolution of the existing digital payment system. This opens up possibilities for lowering currency management costs.
CBDCs and cryptos are analogous to rupees and stocks. CBDCs are used for payments, whereas crypto assets are used as investment tools similar to stocks. Cryptocurrencies are a portal to a future decentralised world, the Web3.
(With inputs from Shikha Singh)
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