Business News | Huobi Research Institute Expects India's New Cryptocurrency Tax to Dampen Crypto Demand

Gibraltar, March 23 (ANI/PRNewswire): India announced the launch of cryptocurrency taxes effective April 1, when cryptocurrency gains will be taxed at 30%. This is one of the highest cryptocurrency taxes globally, and even higher than what is charged for gambling and lottery winnings in India.

Commenting on the new tax, Flora Li, director of Huobi Research Institute, said:

Also Read | Delhi Police Arrest 58-Year-Old Man For Availing Facilities on Fake Property Papers.

"To date, cryptocurrencies have been classified as financial services in India with GST of 18% applied to transactions on exchanges. With the upcoming 30% tax on profits generated by cryptocurrencies, we believe that this will dampen demand and discourage investors from trading and adding cryptocurrencies to their asset portfolios. In addition, the new tax will result in investment costs spiking over 50%, which will reduce the risk premium for cryptocurrencies and make Indian investors more conservative. The combination of these two outcomes will likely impact the crypto market in India in the short run. Long-term, however, we still believe that India, given its size and young population, continues to remain an attractive market for the cryptocurrency industry."

Huobi Blockchain Application Research Institute (referred to as "Huobi Research Institute") was established in April 2016. It is committed to researching and exploring new developments in the global blockchain industry. Its goal is to accelerate the research and development of blockchain technology, promote its applications, and improve the global blockchain industry ecosystem. Huobi Research Institute covers industry trends, emerging technologies, innovative applications, new business models, and more.

Also Read | Realme GT 2 Pro India Launch Might Take Place on April 7, 2022: Report.

Huobi Research Institute partners with governments, enterprises, universities and other institutions to build a research platform that covers the entire blockchain industry. Its professionals provide a solid theoretical basis and analyze new trends to promote the development of the industry.

Contact Huobi Research Institute:

E-mail: research@huobi.com

Twitter: @Huobi_Research

Medium: medium.com/huobi-research

Telegram: t.me/HuobiResearchOfficial

This story is provided by PRNewswire. ANI will not be responsible in any way for the content of this article. (ANI/PRNewswire)

(The above story is verified and authored by ANI staff, ANI is South Asia's leading multimedia news agency with over 100 bureaus in India, South Asia and across the globe. ANI brings the latest news on Politics and Current Affairs in India & around the World, Sports, Health, Fitness, Entertainment, & News. The views appearing in the above post do not reflect the opinions of LatestLY)