Shardeum: India’s 1% tax on cryptocurrency transactions does not apply to high-frequency transactions

Odaily Planet Daily News Nischal Shetty, co-founder and president of Layer1 Blockchain Shardeum, said in an interview at the Messari Mainnet Summit that India’s regulation of crypto assets has had mixed effects. India imposes a 1% tax withholding at source (TDS) on digital assets. For Indian institutions, the 1% TDS may make the bear market particularly dangerous. At a time when profit margins are already low, the tax essentially puts HFT firms at a disadvantage, with HFTs taking a percentage of losses every time they sell, making crypto HFT firms rare in India. Shetty added that 1% TDS is not necessarily a bad thing for the average retail trader, who might buy and hold the token for six months to a year. Indian lawmakers have largely focused on protecting consumers and pushing for regulation of businesses such as exchanges. (Decrypt)