Coinbase invests in Indian crypto and Web3 amid clarity of tax rules

Coinbase Ventures, an investment arm of American crypto exchange Coinbase, shared a plan to invest $1 million in various Indian cryptocurrency and Web3 initiatives via an in-person pitching event.

In a blog post written during his stay in India, Coinbase CEO Brian Armstrong revealed that the venture firm intends to tap India’s software talent with the crypto and Web3 technologies and help transform India’s economic and… accelerate financial inclusion goals.

On April 8th, the Personal Pitch Day in Bengaluru will be hosted in partnership with Buidlers Tribe, further supported by Belief DAO, to provide bonus grants of up to $25,000. The rising interest of foreign investors in the Indian crypto space can be attributed to the recent regulatory clarity promoted by the controversial crypto tax law.

India’s crypto tax law — which has been in effect since April 1st — requires all Indian citizens to pay 30% of unrealized crypto profits as taxes. Additionally, investors are not allowed to offset crypto losses to offset taxation.

When asked about the general perception of Web3 as a disruptor, Buidler’s Tribe co-founder Pareen Lathia told Cointelegraph that Indian entrepreneurs are excited about taking their companies global. Discussing the impact of the new tax law on attracting foreign investment, Lathia revealed the following:

“The tax law is only a positive step. This is a paradigm shift and regulations will catch up.”

While Indian Finance Minister Nirmala Sitharaman has previously indicated her intention to reconsider the crypto tax in the near future, Coinbase’s market entry has attracted over 110 applicants.

According to Armstrong, Coinbase has previously invested $150 million in Indian crypto and Web3 companies and plans to add 1,000 employees to Coinbase’s Indian tech hub. The introduction of regulations serves as a clear invitation to foreign investment, and Armstrong added:

“India is a magical place and I believe crypto has a bright future here. We are excited to help build that future and this event is an important step.”

Armstrong continues to be at the forefront of achieving regulatory clarity about cryptocurrencies in the United States. Over the past year, Coinbase cleared numerous regulatory hurdles set by the United States Congress and the Securities and Exchange Commission. As a result, the company is expected to play a key role in regulatory discussions surrounding crypto that will spread around the world.

Related: The Indian State Government does not use Polygon to issue verifiable caste certificates

The state government of Maharashtra in India started using Polygon blockchain technology to issue caste certificates as part of the Digital India campaign.

The Maharashtra State Government has partnered with LegitDoc to introduce 65,000 caste certificates to aid in the process of delivering government programs and benefits.

Indian Administrative Service (IAS) staffer Shubham Gupta told Cointelegraph that the Indian government is always on the lookout for disruptive technologies that can help democratize citizen services:

“Web3 takes the concept of democratization to a whole new level, making data/information not only openly shareable, but also openly uncorruptible.”