Edelweiss CEO Warns Against Investing in Cryptocurrency Amid Regulatory Vacuum
Radhika Gupta, CEO of Edelweiss Mutual Fund, has warned Indian investors against buying cryptocurrency due to the country's lack of regulatory framework and high tax rates. In a recent summit, she advised investors not to invest in something they don't understand.
Gupta cited India's failure to establish a clear crypto framework as one of the major concerns. The absence of a dedicated law for cryptocurrencies leaves investors without protection, making it difficult for the sector to grow.
The current tax regime for cryptocurrencies is also a significant concern. A flat 30% tax on gains from Virtual Digital Assets under Section 115BBH of the Income-tax Act makes crypto investments among the world's highest-taxed assets, discouraging retail participation.