India's crypto tax could hurt blockchain innovation: Buterin - The Times of India
Ethereum co-founder Vitalik Buterin warned that India's 30% crypto tax and 1% TDS on transfers could stifle blockchain innovation and prevent the country from becoming a blockchain infrastructure hub.
The 32-year-old Russian-Canadian programmer made these remarks during Devcon, Ethereum's annual global developer conference held in Mumbai. He specifically pointed to India's 30% tax on crypto gains and 1% tax deducted at source (TDS) on transfers as potentially discouraging innovation, particularly for smaller developers.
Tax comparison
Buterin noted that other countries have implemented more favorable tax policies for blockchain development. He highlighted US proposals for a de minimis exemption on small-value transactions and tax exemptions in some nations for assets held for over a year.
India needed a regulatory framework that allowed developers to experiment without excessive compliance burdens
India's blockchain potential
Despite the tax concerns, Buterin expressed optimism about India's blockchain future. He pointed to the country's large Ethereum developer community, open-technology culture, and government-backed open-source initiatives as positive factors.
There is a lot of excitement from people who want to build open technology, both inside Ethereum and outside, and we wanted to engage with that
Buterin, who proposed Ethereum in 2013 at age 19, believes India can move beyond merely supplying developers to global tech companies and instead build its own blockchain infrastructure. He also sees potential for blockchain to complement India's digital public infrastructure, particularly UPI and government services.
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