Crypto unicorn CoinDCX anticipates tax reduction in India
Sumit Gupta, CEO of CoinDCX, expressed his expectation for lower taxes on crypto transactions and more regulatory clarity by the end of 2025
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Indian crypto unicorn CoinDCX claimed that the 1% TDS on crypto transactions introduced by the Indian government in 2022 has had a detrimental impact on digital asset trading, rendering it ineffective.
The tax was introduced in July 2022 to track the buying and selling of cryptos in India. However, the levy has driven 95% of Indian crypto trading volumes to overseas platforms that are difficult for local officials to monitor.
“The whole purpose of the TDS was to track and trace transactions but that is getting defeated,†CoinDCX CEO Sumit Gupta said in an interview. He expects the government to lower the tax in response.
Before the tax levy was imposed, CoinDCX was valued at over $2 billion. Currently, its revenues are at one-third of the levels recorded before the tax levy, reported Gupta. He added that compliance expenses have increased following India’s anti-money laundering legislation application to the crypto industry.
In response to the financial challenges, the company laid off 12% of its workforce in early 2023, which brought its total employee count down to 550. Gupta stated that CoinDCX has operating bank cash and revenue to sustain itself for five more years. Additionally, he expressed his expectation for more regulatory clarity by the end of 2025, following the general elections in 2024.
