Crypto Platform CoinTracker Enters Indian Market To Help With Tax Compliance

San Francisco-based CoinTracker, a crypto tax compliance and portfolio tracking startup, has entered the Indian market with an official product launch in the country. The crypto tax compliance and portfolio tracking products offered by CoinTracker are now available for crypto users in India.

CoinTracker wants to collaborate with partners and the community to boost crypto adoption and usages in India. Besides engaging with Indian crypto users, it also aims to hire talents to grow its local team in the country.

The crypto exchange platform has built tools for cryptocurrency users to build wealth, file taxes, and optimise their portfolio year round. Essentially, it helps crypto investors sync all of their activities across exchanges and wallets into one place and calculate capital gains and losses.

“It can be challenging for folks to navigate the complexity of buying, holding and transacting with cryptocurrency and nearly impossible to comply with taxes without the right tool. We built CoinTracker to solve this problem seamlessly and are excited to deliver our offering in India,” Jon Lerner, CEO of CoinTracker, said. 

In the coming months, the crypto startup plans to rapidly expand its integrations and partnerships with all the popular exchanges and tax products used in India. Globally, it has partnered with big names such as NFT marketplace OpenSea and crypto wallet Phantom.

Earlier this year, CoinTracker raised $100 Mn in a Series A funding round led by venture capital firm Accel. Other VC firms such as Initialized Capital, General Catalyst, Y Combinator Accuity, and Seven Seven Six also joined the round.

“Our mission at CoinTracker is to increase the world’s financial freedom and prosperity, and we believe mainstream adoption of cryptocurrency is a key enabler of that. We are thrilled to see the rapid adoption of cryptocurrency in India,” Lerner added.

As the startup is focussing on experience, support, and education for its users, it has released a comprehensive guide that explains the Finance Act and current status of crypto tax rules in India.

While a number of crypto users in India use CAs to do their taxes, CoinTracker will allow users to add their accountant to complete tax reports for crypto by aggregating exchanges and reconciling complex transactions.

India’s Cryptic Crypto Scenario

CoinTracker has entered the crypto ecosystem of India at a time when the new tax rules for crypto have come into effect on April 1. As per the new tax rules, any income from transfer of any virtual digital asset shall be taxed at the rate of 30%.

Despite the tax legislations, the Indian crypto industry is still facing a lack of certainty in terms of regulations. The Reserve Bank of India (RBI) has always taken a stance against crypto, now accelerated by the current crypto market crash. 

“We have been cautioning against crypto and look at what has happened to the crypto market now. Had we been regulating it already, then people would have raised questions about what happened to regulations,” RBI governor Shaktikanta Das said recently. 

However, global crypto exchanges such as Binance are still seeking an ideal point of time to enter India given the interest of investors. According to a Chainalysis report, India’s crypto market grew 641% from 2020 to 2021, turning India into one of the largest-growing cryptocurrency markets.