Zerodha Co-founder Nithin Kamath Comments on crypto

Zerodha Co-founder and Chief Executive Nithin Kamath on Tuesday said his company will present crypto whenever “SEBI delivers its approval”. Kamath’s words came after India decided to charge a tax of 30% on income from cryptocurrencies and other digital assets.

The good information for crypto, he said, is that it was finally acknowledged in the budget. Kamath said, adding that it will only be legal after the crypto bill.

“Until then, regulated entities in India can’t offer trading in crypto,” he said.

The Zerodha boss further said, “Market markers and active traders are usually 80%+ of turnover in most trading businesses. If costs can’t be shown as an expense, losses can compound quickly.”

Will crypto be treated like stocks?

The Zerodha chief said cryptocurrencies will potentially be treated like stocks. “They will likely have to be held in some demat match overseen by a regulated entity,”. He further stated, “If this happens, crypto will be centralized and lose its next big advantage.”

Kamath added, “If crypto prices don’t keep going up like the last 2 years, I don’t see how the contemporary adoption paces will hold up, assuming that some of what I said comes to die.”