In conversation with Punit Agarwal, Founder KoinX an automated crypto taxation platform
When was KoinX founded? Mention its objectives, goals, and key offerings.
KoinX is an automated crypto taxation platform, launched/founded by Punit Agarwal in 2022, that lets cryptocurrency investors automate their crypto taxations by integrating their portfolios and transactions on a single, unified platform with centralized dashboards. With the announcement of 30% taxes on digital assets, Indian investors are curious to find ways of evaluating their taxes in a seamless and cohesive manner, and that’s where a platform like KoinX comes in handy.
KoinX is currently integrated with the biggest crypto exchanges used by Indians, which enables crypto investors in India to integrate them and calculate the tax in one go. KoinX offers several free tools and free tax reports for up to 50 transactions. “KoinX is also backed by VCs like iSeed Ventures, KubeVC, Ratio Ventures, 1947 Rise, GTM Ventures, and others, apart from leaders like Polygon, Ripple, Netflix, Robinhood, Bain Capital, Freshworks, and Amazon, among others.
- Explain the KoinX No-code crypto tax calculator
Our innovative tool is designed to educate and make users on exchanges, crypto projects, news websites, and accounting and tax preparation services aware. We believe that this value-added service will increase user engagement and loyalty and contribute to the legitimacy of the cryptocurrency industry. Our goal is to make cryptocurrency tax calculations more accessible and user-friendly for everyone, and we are confident that the KoinX crypto tax calculator widget is a significant step in that direction.
- A look at the future of web 3 and how KoinX collaborate with industry players to increase understanding of Web3 technology, crypto taxation, regulations
KoinX is constantly working towards empowering investors to be compliant and regulated by equipping them with resources, conducting webinars to spread awareness, and educating them so that they can become more accountable and make informed decisions.
We are also at the forefront of policy and regulation, as we are partnering with several organizations in the crypto industry to pave the way for better web3 regulations in India.
We also enable exchanges/crypto projects, and portfolio platforms with plug and play situations to help their users make informed decisions, and be compliant.
- Throw some light upon whether G20 expects crypto regulation talks or crypto regulation to be a priority for India at the G20 summit.
At the G20 summit, India hosted the event and leaned towards the direction of regulating crypto, which was seen as a practical decision overdue at that point. India is aiming to develop standard operating procedures for cryptocurrency, and the country is looking towards the International Monetary Fund (IMF) to provide consultations about regulating crypto assets during its G-20 presidency. The Financial Stability Board (FSB) also proposed international crypto rules that focus on closely monitoring the crypto ecosystem and stablecoins, precisely trying to mitigate risks to financial stability. Therefore, it can be inferred that the G20 expects India to prioritise Crypto Regulation talks at the summit.
- What impact has the launch of KoinX had on retail crypto investors and CA Tax professionals?
For retail investors, the platform provides automated tax computation solutions and simplified tax reporting processes, reducing the complexity of tax calculations and saving time.
KoinX’s tax professional platform, is helping chartered accountants and tax experts expand their businesses and clientele and also exponentially reduce the time they are spending on calculations. This could potentially result in lower tax preparation costs. By listing in the KoinX directory, tax professionals are increasing their visibility and showcasing their expertise in crypto taxation.
- What are the future plans of KoinX in the next 3-4 years? Let us also know about your expansion plans in the coming years too?
KoinX aims to be a regulatory suite for the crypto industry. We plan to expand integration with additional exchanges and blockchains.
We are exploring new features and services that add value to our users, such as tools for tracking and managing portfolios.
To reinforce our commitment to security, we would constantly update and uphold the highest information security management standards.
For tax professionals, we plan to expand the directory, letting the professionals showcase their knowledge, gain more visibility, and expand their businesses.
To reach a wider customer base, KoinX may expand its services to new geographical regions in the next 3-4 years.
- As a young founder, highlight your journey and what are your challenges and learnings for budding entrepreneurs.
Punit Agarwal is the founder and CEO of KoinX, a platform that helps calculate crypto taxation in a jiffy. He has been involved in the Web3 landscape for over 5 years and has held noteworthy positions in several blockchain and crypto projects in India. Formerly, he led the Crypto Relief Fund—a $500 million impact fund started by Sandeep Nailwal (Co-Founder of Polygon)—and Punit helped in deploying and overseeing major public healthcare initiatives across India. He is also an advisor for blockchain projects in the space of NFTs, Defi, and the Creator Economy, among several others.
Punit is an engineer from the LNM Institute of Information Technology and has several certifications and licences from the Blockchain Training Academy, the University of California, Berkley, and IBM Blockchain Essentials and Foundation Developer. Up until 2023, he has successfully imparted knowledge to more than 8000 people about blockchain and cryptocurrencies.
Punit Agarwal’s advice for budding entrepreneurs is to build trust and credibility, stay up-to-date with industry developments, build a strong team and a positive work culture, and not be afraid of failure. These lessons can help aspiring entrepreneurs navigate the challenges of the industry and achieve success in their ventures.
- How does the crypto market benefit post-budget? Kindly explain how important it is to file TDS on crypto transactions.
Post Budget, the government has clarified its stance on cryptocurrencies and their taxation. The Budget 2022 introduced a 1% TDS (Tax Deducted at Source) and 30% tax on all crypto gains. The introduction of TDS has made it easier for the government to track and collect taxes on cryptocurrency transactions. However, it is important to file TDS correctly to avoid any penalties or legal issues.
Filing TDS post-budget requires careful attention to detail and knowledge of the latest tax laws, reliefs, and regulations. It is important to determine which TDS form to file under which head(Form 26Q or Form 26QE) and to collect important details like the PAN. One should also verify the TDS details mentioned in the certificates and calculate the total taxable income for the financial year, including income from all sources. Claiming all eligible deductions and exemptions can help reduce your tax liability. Late filing fees under Section 234E may also apply if TDS is not filed on time.
In conclusion, the introduction of TDS on crypto transactions has made it easier for the government to track and collect taxes on crypto gains. However, it is important to file TDS correctly to avoid penalties or legal issues. Staying informed about changes in TDS rules or tax laws and seeking professional help if needed can ensure accurate tax filing. One can also read several tax guides and their implications for different crypto assets and gains under the “Blog” section of KoinX.
