More On: luna
Airdropped LUNA 2.0 tokens would be subject to a 30% tax in India. They will also be unable to offset any losses against any gains because of the country's tax laws.
- If an Indian investor gets the LUNA 2.0 token through the airdrop, they will have to pay a 30% tax on it.
- They can't use any new gains to make up for losses from the first LUNA token.
- As investigations continue, Terra is having a hard time getting back on its feet after being brought back to life.
The country's rigorous crypto market taxes implies that any funds received are taxable, regardless of whether they were obtained freely or not. Many Indian investors may be required to pay a substantial amount of taxes due to the tax plan.
As an alternative to dealing with its volatility and complex tax accounting, it is conceivable that many investors will simply sell the investment and be done with it.
The new tax legislation in India took effect on April 1 and sparked a frenzy of activity among investors, who are among the most avid consumers of cryptocurrencies worldwide. There has been modest progress in terms of general development, with CoinSwitchKuber creating the first rupee-based index for the cryptocurrency market on the exchange platform.
India is also mulling a reverse charge tax on foreign cryptocurrency platforms. This might drive even more business out of the country, which is already experiencing a precipitous decrease in trading volumes.
LUNA 2.0 has difficulty gaining traction.
The LUNA 2.0 token was airdropped to holders of the original LUNA token in an effort to rebuild the Terra ecosystem following its catastrophic collapse. The coin itself has struggled to gain traction, plummeting by nearly 65 percent from its all-time high of $11.33 in value.
In May, the trade volume for LUNA 2.0 topped $2 billion, but its future is uncertain given the controversies surrounding the project.
Reportedly, the new network is also considering introducing a new stablecoin, which may not sit well with authorities.
Multiple inquiries are being conducted regarding Terra's operations.
Numerous pending cases will hinder Terra's restoration efforts. After the Terra incident, South Korean authorities have also increased their crypto regulatory efforts.
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