Indian Crypto Firms Could Bag Funds from Coinbase Amid New Tax Laws

Polygon, Ethereum, and Solana blockchains emerged as top choices among Indian crypto entrepreneurs who are signing up for Coinbase's pitch session. The investment arm of Coinbase crypto exchange is offering funding of up to $1 million (roughly Rs. 7.5 crore) to Indian crypto and Web 3 firms. ‘Cryptopreneurs' from around the country have been invited for an in-person pitch session to be held in Bengaluru city on April 8. Coinbase has partnered with Builders Tribe, a funding facilitator for crypto firms, to host the pitching session.

As per an official update by Builders Tribe, over a hundred applicants have already signed up for the pitch day.

Coinbase CEO Brian Armstrong has been touring India for a week now. The 39-year-old plans to meet students from top Indian universities as well as crypto investors.

“Coinbase Ventures has already invested $150 million (roughly Rs. 1,132 crore) in Indian technology companies in the crypto and Web 3 space. Combined with India's world class software talent, we believe that crypto and Web 3 technology can help accelerate India's economic and financial inclusion goals,” Armstrong wrote in a blog post.

Participants gearing up for Coinbase's pitch day can also win a bonus of $25,000 (roughly Rs. 18 lakh) from grants programme BeliefDAO.

Research firm Triple A estimates that the Asian subcontinent houses more than 100 million crypto owners. That's 7.3 percent of India's population of around 1.7 billion.

The government of India is taking a cautious approach towards the emerging digital assets sector, but is positively not planning to restrict or ban the industry.

Starting April 1, a 30 percent tax is being deducted from any profits generated via crypto trading in India. In addition, India's requirement of one percent TDS on each crypto transaction is also in action. Failing to comply can land violators in jail for up to seven years.

India's decision to tax the virtual assets category was first revealed by Finance Minister Nirmala Sitharaman in February. At the time, crypto industry insiders had welcomed India's subtle official recognition of the crypto sector.

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