The crypto market has been growing at a rapid pace in India. It is expected to touch $241 million by 2030, according to a Nasscom report, prepared in association with WazirX.
The growing market, however, has also been a concern in the absence of any regulator to govern the market. Amid this regulatory ambiguity, crypto exchanges seek clarity including the classification of crypto as an asset class and its taxation policies. Here are Budget expectations from the representatives of leading crypto exchanges in India.
Nischal Shetty, CEO and founder of WazirX
Besides regulatory clarity, we expect better clarity from the government on crypto taxation. India has been witnessing an economic recovery despite the COVID waves.
A regulatory clarity will give the crypto sector a boost, accelerate its growth and potential to contribute to our $5 trillion economy vision. We expect the Union Budget to present fine-tuned clarity on the crypto landscape.
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.
Manhar Garegrat, Executive Director - Policy and Special Projects, at CoinDCX
We expect the government to officially acknowledge the nascent crypto industry in India and pave the way for the inclusion of the industry within the financial ecosystem.
Various governments from developed nations across the world have created the distinction between income generated from crypto as business income or long-term capital gains tax.
For the benefit of millions of Indian investors who are invested in crypto, we hope there will be adequate clarification on whether or not the income qualifies as business income. Similarly, clear guidelines and an explicit inclusion of crypto assets, and their corresponding treatment in the current GST and income tax guidelines will be hugely beneficial to the many crypto businesses operating in the country as well.
Further, given that there have been calls for a calibrated approach and due regulations from the government, we also hope to see some strong signals from the government in the form of taxation related guidelines. By making crypto interoperable with the existing financial ecosystem and including this dynamic ecosystem into our financial framework with a long-term view, we are confident that this industry can contribute to turn India into a $5 Trillion economy.
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Sharan Nair, Chief Business Officer, CoinSwitch
In India's efforts to harness technology to enable financial inclusion, the central government has been progressive in formulating policies that support strong and sustainable economic growth. Amidst crypto mainstreaming excitement worldwide, several Indians have started investing in this emerging asset class.
While leading crypto companies are taking proactive steps to self-regulate, we, as an industry, believe that a regulatory framework will standardise best practices across the industry. We are hopeful that the upcoming Budget session will bring clarity around crypto investing and help broaden financial inclusion across the country.
Vikram Subburaj, Co-Founder and CEO, Giottus Cryptocurrency Exchange
2022 should be a year of clarity for the crypto ecosystem. The upcoming Budget is a good opportunity to start a dialogue around various undefined aspects of the asset class that need addressing.
We expect well-defined regulations around crypto and blockchain technology to eventuate this year which will drive confidence in the ecosystem. We hope the regulations are forward-thinking setting a precedence to the developing world with regards to thought leadership and industry development.
Businesses and individuals would then be able to operate with much clarity as the ambiguity around taxation is cleared and crypto assets get defined appropriately under various taxation laws.
This is a very nuanced field with new innovations evolving on a day to day basis and hence needs a generic structure to ensure it gives enough space for innovation to foster. We hope the crypto startups that have set their base abroad get back to India and focus on creating the next set of jobs for the innovative and passionate youth in the nation.
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