India’s crypto tax could hurt blockchain innovation: Buterin

MUMBAI: India’s cryptocurrency tax regime could hamper blockchain innovation and undermine the country’s potential to become a hub for building core blockchain infrastructure, Ethereum co-founder Vitalik Buterin said.Speaking on the sidelines of Devcon, Ethereum’s annual global developer conference, in Mumbai, the 32-year-old Russian-Canadian programmer said the 30% tax on crypto gains and 1% tax deducted at source (TDS) on transfers could disproportionately burden smaller developers and discourage innovation. Buterin pointed to proposals in the US for a de minimis exemption on small-value transactions and tax exemptions in some countries for assets held for over a year. India needed a regulatory framework that allowed developers to experiment without excessive compliance burdens, he suggested.He believes India can move beyond supplying developers to global technology companies. Its large Ethereum developer community, open-technology culture and govt-backed open-source initiatives offer grounds for optimism, he said.Buterin, who proposed Ethereum in 2013 at the age of 19, helped expand blockchain’s use beyond digital currency. The platform, launched in 2015, allows developers to build applications using blockchain technology.“There is a lot of excitement from people who want to build open technology, both inside Ethereum and outside, and we wanted to engage with that,” he said, explaining India’s choice as the venue for Devcon. He also sees scope for blockchain to complement India’s digital public infrastructure, particularly UPI and govt services.