Questions and answers: Grayscale Exec for taxing crypto -subdued securities in India

Questions and answers: Grayscale Exec for taxing crypto -subdued securities in India

cryptocurrency enthusiasts in India now have a new way to engagement in digital assets: crypto supported securities from Grayscale investments based in the USA.

Free movement finance A brokerage company that enables Indian investors to invest in US shares last week that investors in India now announced crypto investments can have without buying cryptocurrencies directly.

As part of the premium offers on Vested, investors can get access to Bitcoin, ether and other crypto-ets via the following Grayscale products that only invest in Bitcoin, Ether, Litecoin, Ether Classic and Bitcoin Cash.

If individuals want to invest in a basket of crypto systems with large market capitalization via only one fund, you can invest in the Grayscale Digital Large Cap Fund (GDLC). About 90 % of the fund are invested in Bitcoin and Ether, but it is also involved in Litecoin, Solana, Cardano and Avalanche.

Grayscale Ethereum Trust (ethe)

Grayscale Litecoin Trust (LTCN)

Grayscale Ethereum Classic Trust (etcg)

Grayscale Bitcoin Cash Trust (BCHG)

If individuals want to invest in a number of large cap crypto systems via only one fund, you can invest in the GrayScale Digital Large Cap Fund (GDLC). About 90 % of the fund are invested in Bitcoin and Ether, but it is also involved in Litecoin, Solana, Cardano and Avalanche.

Since investors do not buy directly via this offer, they are not subject to the government imposed by the government. According to the announcement, these products are treated like capital gains that resemble investments in US shares.

"Taxes on cryptoassets made the investment in crypto less attractive for Indian investors," said Viram Shah, CEO of Vested. “Grayscale gives investors access to crypto by investing in a share and at the same time not being subject to high taxation.

Blockworks interviewed Rayhaneh Sharif-Askary, Head of Investor Relations at Grayscale (edited for reasons of length and clarity):

Shalini: Grayscale has a stronger presence in the USA. What prompted the company to expand into other markets like India?

rayhaneh : In addition to investors (in the USA), we see that investors worldwide use our products for access to cryptocurrencies, not only to deal with the problems that are connected with the fact that crypto is a chopped digital carrier, but also to deal with other exogenation - for example a tax regime. Due to the unfavorable control system for the direct possession of crypto products, investors in India can instead get exactly the same commitment by buying shares in Grayscale products via Vested.

Shahalini: What are the advantages of an investment in crypto -based securities compared to a direct investment in crypto?

rayhaneh : The purchase of a digital owner assets such as cryptocurrency is associated with many problems associated with custody and property. Crypto -based securities are a well -known format, just like you would buy other stocks. Investors can therefore simply buy cryptocurrency in the form of our products and place them in addition to their Apple or Amazon shares or other shares that they have in their brokerage accounts.

Shalini: What is the tax reason that the Grayscale investment products are treated as well as stocks?

rayhaneh : GBTC, for example, is an over-the-counter (OTC) product, so it is traded on the OTC markets. Anyone who has access to a broker account that can access US securities can buy these products, and the products themselves are set up in such a way that they have the underlying asset. So you get the same exposure because you buy stocks of a trust or a company that actually belongs to cryptocurrency.

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The article Q&A: Grayscale Exec on Taxation of Crypto-Backed Securities in India is not a financial advice.