Cryptocurrency Investors in India, after losing big with TerraUSD, face tax pressure4 min read 06 Jun 2022, 08:10 AM IST
Terra investors lost billions of dollars when the algorithmic-stablecoin project crashed, but a new token was released as compensation, and they were able to recuperate a small fraction of their losses. India's investors haven't fared as well.
When the algorithmic-stablecoin project crashed, Terra investors around the world lost billions of dollars, but a new token was distributed as compensation, and they were able to recoup a small portion of their losses. India's investors aren't as fortunate. TerraUSD and Luna token holders who received the new coin — known as Luna 2.0 — in an "airdrop" face a double whammy because the country's tax regime penalises cryptocurrency investments. According to tax experts, they could be taxed up to 30% of the value of tokens received, and they won't be able to offset any profits in the new token against losses in the prior one.
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