This startup does what most CAs cannot – calculate cryptocurrencies; and 16,000 Indians stand in line

• KoinX, an Indian crypto startup launched a platform for calculating cryptocurrencies, raising $ 1.5 million in startup funding.
• More than 16,000 users have been registered on the platform’s waiting list.
• Four Indian and two international crypto exchanges have partnered with KoinX.
• The subscription to the platform is priced at ₹ 749 per user per year.

India has a new crypto tax regime in place, and investors are struggling to understand the implications of their tax. India’s first platform for calculating crypto tax, KoinX, aims to make life easy on the tax front for crypto investors.

KoinX was launched on April 5, 2022, and sees active interest, with over 16,000 Indian users on the waiting list. It claims to be a one-stop-shop for calculating taxes imposed on digital assets such as cryptocurrencies, NFTs or other virtual currency.

“Cryptotransactions are complex, except INR couples, there are crypto-to-crypto transactions that are also allowed in this ecosystem. Since crypto is dynamic, it is difficult for the average person to keep track of the ever-changing prices. Keeping up to date with new reforms of the crypto tax legislation in the country will also be difficult, says KoinX’s founder Punit Agarwal to Business Insider India.

The Indian government announced new cryptocurrencies earlier this year, with a 30 percent tax on cryptocurrencies, effective April 1, and a tax deduction of 1 percent at source (TDS) on all cryptocurrencies, effective July 1.

India’s crypto market is going through difficult times with Indian crypto exchanges reporting a fall of over 90% in their trading volume, mainly damaged by the new taxes.

Survive the crypto bear market

However, angel investors are optimistic about the sector, as the recent investment in KoinX shows.

KoinX raised $ 1.5 million in start-up funding from the Polygon founder Sandeep NailwaliSeed Fund, Cube VC and over 40 plus angel investors July 5, 2022.

“It is undoubtedly worrying for an angel investor to see the alarming numbers, but many companies built in the beef market are based on euphoria. The companies that survive the current bear market for crypto and flowers during this time are worth investing in. Such a company is KoinX, ”said Ajeet Khurana, cryptocurrency adviser and former CEO of ZebPay, one of India’s first crypto exchanges, and also an angel investor in KoinX.

KoinX acquired Crypto Kanoon on July 5, 2022 for an undisclosed amount for lasso in the loyal crypto community in India. Crypto Kanoon, founded in 2018 by Kashif Raza, provides legal updates on cryptocurrencies in the country.

Developing space

Crypto is an area in development, with even the regulators still struggling to understand how everything works, says KoinX, and its tax calculation platform will help investors navigate this landscape better, as they believe that even chartered accounts are not up to date on crypto.

“The first reaction of a certified public accountant in India is that crypto is not legal. Apart from the service fees, they often admonish users to keep some assets in crypto. KoinX aims to solve this,” Raza said.

KoinX charges ₹ 749 per user per year to calculate and prepare a ready to download tax report for filing crypto revenue. It has been linked to six crypto exchanges – CoinDCX, CoinSwitchBinance, Vauld, Bitbns and WazirX – for data access.

The company aims to start with taxes, but may expand to other additional services in the future. Agarwal says that users on the waiting list will have early access to the application and additional benefits. Users who joined the waiting list between 20.00 IST to 23.59 IST on July 5, will enjoy using the platform for free for two tax seasons, he added.

The app version of the platform is expected soon.