Crypto tax a block for Blockchain? Industry divided

economictimes.indiatimes.com:

blockchain ecosystem valued in excess of $15 billion. But it must hurdle potential barriers to growth in the shape of newly prescribed taxes that, some others believe, is more help than hindrance to this perception-challenged sector. The 30% tax (and TDS) on crypto income announced in the Budget is seen by some as “recognition” of the blockchain industry. But many others also believe a high tax regime and stringent taxation terms could stunt growth in a sector populated largely by bootstrapped start-ups. “A high tax rate is very discouraging… it’s also a growth deterrent,” said Sidharth Sogani, founder — CEO, Crebaco, a rating agency for digital currencies and businesses that work with them. “Higher tax incidence reduces the scope for all players in the ecosystem; the crypto world is not just about exchanges that facilitate trading or investments.”

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Developers of decentralized applications (DApps) and DeFi protocols, raters, wallets, blockchain-focused venture funds, crypto asset managers, distributed ledger tech companies, crypto-gaming & GameFi app makers and blockchain-linked Web 3.0 players form a large part of the $15-billion cohort. “There are players that are trying to build other use-cases on the blockchain,” said Sogani. According to Crebaco, the $15-billion Indian blockchain industry employs nearly 10,000 people currently. “If your taxation is unfriendly, companies will move out of the country. This space is global in nature, and it is internet-based; travelling between