Indian Crypto Holders to Pay 30% Tax on the Luna 2.0 AirdropJune 6, 2022
Indian investors would pay a 30% tax on LUNA 2.0 tokens received through airdrops. Aside from this, they will also be unable to compensate losses against any gains due to the country’s tax laws.
According to Bloomberg, taxes may prevent Indians who were harmed by the Terra tragedy from recovering even a percentage of their losses.
The country’s rigorous taxation on the crypto market states that any funds received are subject to taxation, whether they are freely received or not. As a result, many Indian investors may have to pay significant taxes.
The new tax regulations in India went into effect on April 1, sparking a frenzy of activity among investors. In addition, India is considering imposing a reverse charge tax on international cryptocurrency platforms. This might drive even more business out of the country, which is already seeing significant losses in trade volumes.
For instance, holders of the original LUNA token (LUNA Classic) received the LUNA 2.0 token as part of an effort to revive the Terra ecosystem following its catastrophic crash. The token itself has struggled to gain traction, falling by more than 65% from its all-time high of $11.33.
In May, the trade volume for LUNA 2.0 topped $2 billion, but it remains to be seen how the project will do given the controversies surrounding it.
Additionally, the new network is also apparently considering introducing a new stablecoin.