With less than a week left for union budget 2022-23, India’s cryptocurrency industry is expecting more clarity from the government in terms of taxation and regulation in digital-asset space. According to reports, around 20 million people in India joined the crypto bandwagon in 2021, and they hold crypto assets worth $5.3 billion. Given the massive investment in the sector, the industry players believe any announcement on the regulatory framework for cryptocurrencies will give the crypto sector a boost and accelerate its potential.
Here is what the crypto industry is expecting from the upcoming budget:
Time to introduce a regulatory framework: Cashaa Founder & CEO, Kumar Gaurav
“The crypto industry has stayed amidst speculation for a couple of years now. With the upcoming budget we expect the government to introduce the regulations that the community has been awaiting for a long time. The positive growth is only possible with the introduction of a stringent framework. This is also expected to welcome a heavy fund infusion in the country by foreign investors,” Gaurav said.
Polytrade Crypto CEO and Co-founder Piyush Gupta said, “We think regulatory clarity could be a welcome step in this sector that will address the apprehensions people might have in this transpiring asset class.”
The Polytrade Crypto CEO also expects that the upcoming budget will also reflect an innovation-focused futuristic outlook, with the regulation in sync with leading countries in this space.
Any direction on crypto regulation or taxation is welcome: Nischal Shetty, CEO, WazirX
“While the legal implementation still seems a while away, any initiative announced in the budget would at least open a direct line of conversation on crypto classification as an asset class, its taxation policies and the blue-ocean opportunities available in this globally emerging segment. This would not only encourage institutional investments in the space but also open up job opportunities in the underserved markets, ” said Nischal Shetty, CEO, WazirX, as reported by The Week.
“In this budget, we may expect the government to provide directions on the taxability of crypto assets to investors, however detailed rules and taxation framework for cryptocurrencies is still a work in progress. The sale and purchase of cryptocurrencies may also be subject to levy of TDS/TCS. Clarification on applicability of GST on trading and brokerage activities is also required…,” he added.
Mudrex CEO Edul Patel also sought clarity on taxation aspect of the crypto sector in the upcoming budget.
“As India has nearly 15-20 million cryptocurrency investors with total crypto holdings of around USD 5.29 billion, the sector would like to have clarity on the taxation aspects of buying and selling different cryptocurrencies, ” India Today quoted Patel as saying.
Also Read: Union Budget 2022: Edtech players expect lower GST, better digital infra, ESOP tax revisit
Address apprehensions regarding crypto ban: Jaya Vaidhyanathan, CEO, BCT Digital.
“There is a fear among the public of a possible ban on it by the Indian finance minister in the budget next week. However, having permitted the promotion of crypto trading through advertisements on prime media and having been a spectator as the masses have gobbled up cryptocurrencies for years now, it would be unexpected of the government to ban it altogether. This may defeat the very purpose of protecting the interests of common investors,” says Jaya Vaidhyanathan, CEO, BCT Digital.
Sharan Nair, Chief Business Officer of CoinSwitch Kuber, hopes that the upcoming Budget 2022-23 will bring in regulatory clarity, help standardise best practices, and address misconceptions around this emerging asset class.
He also highlighted that various macroeconomic developments in India and the world over the last year have led to a rise in crypto adoption in India.
