How Cryptocurrencies Are Dealing With Regulatory Challenges in India? | Twitter Space Ep4

When the world is moving towards the decentralization of money, transparency in the movement of assets is becoming mandatory. 

However, a severe lack of clarity in the tax regulations makes it difficult for investors to manage their taxes. 

To deal with this challenge, blockchain solutions such as Kryptoskatt have developed a simple, easy-to-use, and crypto-centric tax calculating software. Kryptoskatt enables its users to maximize their crypto savings and reduce the hassle of managing the records of their on-chain transactions. 

The potential of Kryptoskatt in the blockchain industry compelled CoinGabbar to invite Sukesh Kumar Tedla, founder of Kryptoskatt to our Know Your Crypto Twitter Space series. This session was a detailed insight into the regulatory challenges that the crypto industry is undergoing and how Kryptoskatt could be a viable solution for it. The session was moderated by CMA Sudeep Saxena, Co-Founder, CoinGabbar.

Indian Government’s Take on the Crypto Regulations

The clarity in crypto laws of India has become a mandate as per the present market conditions when investor trust is at an all-time low. In the aftermath of the FTX collapse, crypto users are moving towards P2P and decentralized solutions to secure their funds and that has become a bone of contention for the centralized players. 

Even the Binance CEO has officially said that high taxation on crypto and a lack of clear regulations are hindering innovation in India. Crypto regulations will not only open the gates for international players to enter the Indian crypto space but also makes it possible for the regulators to trace the bad actors and take suitable actions to secure the investor's funds. 

Concerns regarding the use of cryptocurrencies in illegal trade are not the only reasons for the government’s skepticism. Even without blockchain technology, the dark web exists and will continue to exist. However, the matter of fact is that crypto gives a free highway for international trade which makes the government uncomfortable as it cannot allow that to happen without any taxes.

On the other hand, we also have to understand that blockchain is a state-of-the-art technology and it is bound to undergo some resistance from governments as well as first-time users. This was the same for the ATMs, Online Banking, and UPI and only time will make it normal. 

A Global Consensus  And Uniformity in the Regulations

Countries around the globe are facing the same problems as that India in terms of regulating cryptocurrencies. Blockchain technology is designed to decentralize money and that can severely affect the power vested in the government’s centralized authorities. 

India has already raised its voice on different international platforms, asking for a global consensus, and now when we have the presidency of G20, we can call for uniformity in regulations globally to make it feasible for crypto users to trust the authorities. 

India is already working on its crypto regulations as and would be releasing them in 2023. European Union is also trying to bring standardization into the crypto industry and tools such as Kryptoskatt and Chainalaysis can make it a lot easier for them.

How Did Kryptoskatt Start?

Sharing the journey of Kryptoskatt from the very beginning, Sukesh said, 

“I know about blockchain since 2017 and the distributed technology fascinated me a lot.  Back then I was tracking all the sources manually to cover airdrops and ICOs because there was no tool to make this information accessible. With this, I also started to figure out my own taxes and faced difficulties in the lack of dedicated software to do this for me.”

“I talked to accountants and that was way too costly. In 2020 I decided to take it upon myself and started writing code to automate my crypto taxes. When we started, there were no industry standards and thus we had to work with  500 different exchanges to integrate them into Kryptoskatt. That was tough but it was worth it. 

“This all started with my personal problem and then I realized that it needs to be solved. Everyone has to use taxes and that's why we decided to make it possible.” 

For now, Kryptoskatt completely supports Sweden and it is working towards achieving the same with other countries, their jurisdictions, and specific tax forms. Kryptoskatt would soon be supporting most of the jurisdictions in the world including India, New Zealand, and the UK.

Kryptoskatt is a completely bootstrapped startup that was started with three team members. However, the biggest challenge in front of Sukesh and the team was the lack of standardization in the industry and the need to build integrations to exchanges, wallets, and marketplaces. 

How to Use Kryptoskatt?

The whole idea behind developing Kryptoskatt was to make it easier for users to manage their taxes and that is why using it is as easy as any other mainstream application. Here are some of the steps that you need to follow to get started with Kryptoskatt:

• Login into the Kryptoskatt with your email address

• Select your country 

• You will be onboarded into the platform with everything explained to you in detail.

• Add your crypto wallet and exchanges with our inbuilt integrations. 

• You can also watch our tutorial videos to understand the complete procedure

All of these steps do not take more than five minutes of your time and the rest of the things are done by the algorithm. We fetch the blockchain data using your wallet API and provide you will the details of all of your transactions while also calculating all the taxes for you. Kryptoskatt has 50+ integrated blockchains including Polygon Avalance and others. 

How Safe is it to Use Kryptoskatt?

Kryptoskatt is completely safe for the users as it never has access to either your funds or your private keys. Kryptoskatt only needs your public wallet address and read access to your wallet API. Kryptoskatt makes sure to inform the users about the details that they should be sharing with us and we clarify multiple times that their private keys should only remain with themselves. 

Kryptoskatt only has access to your email address and it is also working with whitehat hackers to ensure that there are no loopholes in their platforms. 

Conclusion

Blockchain technology ensures that all the information regarding any transaction is available to everyone. Even in that case, there is no way to identify that a particular wallet belongs to a particular individual. Apart from that, the majority of blockchain data is non-consumable and must be refined before being utilized for any purpose. Kryptoskatt does everything for its users without giving them a headache. 

However, the right information is the key that making a difference in this ever-changing world of cryptocurrencies and this is where CoinGabbar comes into the picture. CoinGabbar is educating the masses about the right crypto regulations and why they are important for the future of cryptocurrencies. 

We provide the latest market updates along with deep blockchain concepts to all users for free. CoinGabbar is making crypto education possible for all and building the foundation of a stable and regulated cryptocurrency market in the world.