Cryptocurrencies
Terra Investors in India Lost Big. Now They Face the Taxman
- Holders of Luna 2.0 token could face tax of as much as 30%
- Dilemma reflects Indian government’s ambivalence over crypto
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Terra investors around the world lost billions of dollars when the algorithmic-stablecoin project crashed but they recovered a small part of their bets when a new token was distributed as compensation. Investors in India aren’t as fortunate.
Because the country’s tax system is punitive to crypto investing, TerraUSD and Luna token holders who got the new coin -- known as Luna 2.0 -- in a so-called airdrop face a double whammy. They could be taxed as much as 30% of the value of tokens received and they won’t be able to offset any gains in the new token against losses from the previous one, tax experts said.