Crypto exchange Giottus announces zero-fee window to aid investors

Cryptocurrency exchange Giottus announced on Tuesday that they would be introducing a zero-fee window from March 30 to April 2, 2022, to reduce the burden on investors ahead of the new crypto tax regime that kicks in from April 1, 2022.

The crypto exchange announced in a release that investors would be able to make unlimited trades with INR pairs without paying any fees during the four-day window. It is noteworthy to mention that the fees of crypto-crypto trades would continue to be at the prevailing rates.

A flat 30 per cent tax on crypto gains and 1 per cent TDS has been imposed on Indian crypto investors, starting from April 1, 2022.

Many industry insiders and experts believe that the new tax regime is expected to present crypto investors with a disadvantage. Apart from the blanket tax rate and TDS, crypto investors would not be able to set off or carry forward their losses. Moreover, investors would not be able to claim deductions of any sort to reduce their tax burden.

Many have called the new tax regime “regressive ” and “detrimental”. Concerns have been raised about the fact that the tax regime and strict regulations would promote peer to peer markets more and give rise to a crypto grey market. The excessively harsh regulations would drive away customers from KYC compliant crypto exchanges.

Furthermore, concerns are also being raised that the regulations might cause 'brain drain', with promising talent moving to other countries to promote the Web3 innovation there.

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