Crypto holders in India will be paying a 30% tax on Luna 2.0, the new crypto token of troubled Terraform Labs that was acquired through an airdrop, reported BeInCrypto.
The Indian government has tight regulations on cryptocurrency, with even involuntary funds being tax-liable. The country will also not offset losses against gains. These laws were put into place on April 1.
There have also been talks of the Indian government imposing a reverse charge tax for foreign crypto platforms, signaling trouble for the already declining market. BeInCrypto predicts that most investors will sell due to the complexity of the tax accounting.
This news comes after the recent Luna crash, which saw the coin fall from a peak of US$117 in April to almost zero in May after UST – Terra’s stablecoin – lost its peg to the US dollar. The company is facing a barrage of lawsuits, with a team of Terra lawyers quitting after the crash occurred.
See also: Luna and UST are close to dying. What comes next?
The Luna 2.0 airdrop, which occurred on May 28, is Terra’s effort to revitalize its crypto ecosystem, with original Luna coin holders – which has now been renamed Luna Classic – receiving this new generation of currency.
Editing by Miguel Cordon and Lorenzo Kyle Subido
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