Crypto tax remains unchanged; Tim Draper bats for open governance
Read about this week's developments, news, and trends in the Web3 ecosystem.
No changes to crypto tax in India
In the latest Union Budget speech, Finance Minister Nirmala Sitharaman did not make any major announcements regarding the regulation of crypto assets, known as Virtual Digital Assets (VDAs) in India.
This implies that the existing policies, which were established during the previous year's budget, will remain unchanged.
As a result, VDAs are expected to continue to be classified as virtual digital assets, and the transfer of income from these assets will be subject to a 30% tax.
Additionally, a 1% tax will be withheld at source for all VDA transactions. It is also worth noting that losses from the transfer of VDAs cannot be offset against any other income.
Tim Draper bats for open governance
American venture capitalist and founder of Draper Fisher Jurvetson (DFJ), Tim Draper, believes that blockchain and Web3 technology have the potential to improve the efficiency and processes of the Indian government.
The Silicon Valley investor, who is a strong supporter of decentralised technology, stated that he is looking for more gov-tech Web3 startups that can assist governments, particularly in India, in transitioning to a more open and transparent system.
Draper emphasised that he would like to see existing government models being disrupted by blockchain, leading to easier access to capital, healthcare, and infrastructure for solving local problems.
With Indian crypto sector losing out to foreign markets, Web3 startups call for more progressive regulation
NEAR's bet on India
Layer-1 blockchains such as Ethereum, Solana, and BNB Chain have become popular in the Indian Web3 space. Similarly, , a Layer 2 solution, is a market leader in India.
Now, —a promising Layer-1 project that utilises sharding for scalability—is entering the market. The company is actively supporting startups and boosting blockchain talent development and innovation, with the aim of onboarding 5 million monthly active users (MAUs) in India by the end of the year.
NEAR joins the other prominent chain ecosystems in India in tapping into the country's technological and developer talent pool. The goal of NEAR India is to drive mainstream adoption of Web3 apps and networks through collaboration and partnerships with Web2 brands and startups.
