Cryptocurrencies have long been out of the direct purview of the government. Most of the government’s control over this asset class was through cryptocurrency exchanges. During the Union Budget 2022 speech, Finance Minister Nirmala Sitharaman mentioned a new ‘Virtual Digital Asset’ category. Cryptocurrency and NFTs should fall under this label.
The government has proposed a 30 per cent tax on this new category of property. Taxation can reduce the total return. However, it also gives some amount of legitimacy to this investment option from the Government of India.
Cryptocurrency exchanges are still on the front lines when it comes to this relatively new asset. The government has the power to regulate these exchanges. BGR.in spoke to some of the country’s most prominent exchanges to find out what they think of the government’s new move. Should crypto investors be pleased that there is some formal acceptance? Or is the 30 per cent tax a bit high for the industry?
vizierX
Nischal Shetty, Founder and CEO, WazirX, said, “India is finally on its way to legalize the crypto sector in India. It is unprecedented news that India is launching a blockchain powered digital rupee. This move will pave the way for crypto adoption. And will put India on the front seat of innovation.”
Shetty further added that, “It is also interesting to note how our government is starting to recognize crypto as an emerging asset class. However, the biggest development today was the clarity on crypto taxation. It is India’s crypto. Will add much needed validation to the ecosystem. We also hope that this development will remove any ambiguity for banks, and the way they can provide financial services to the crypto industry.”
He claimed that this move of the government would encourage many people to invest in this digital asset. Shetty claimed that most people, especially corporates, who are sitting on the sidelines due to uncertainties, will now be able to participate in crypto.
zebpe
ZebPay CEO Avinash Shekhar said, “Tax for profit on virtual digital currencies has always been applicable, but there was no clarity on this in the ecosystem. Taxing virtual digital assets puts the entire ecosystem, including investors and exchanges, on the road ahead. Transparency comes in. The 30% tax on income from virtual digital assets, while higher, is a positive move as it legalizes crypto and hints at an optimistic sentiment for acceptance of crypto and NFTs among all stakeholders in the country. India has come a long way in its approach towards crypto since last February and we are confident that this will usher in a new era of growth and innovation for India in the Web 3.0 world.
He further added that, “Additionally, the announcement of the launch of a digital rupee using the blockchain issued by RBI will introduce Indians to the benefits and efficiency of virtual currency, crypto, blockchain and many more innovations and create an appetite for employment.” There will be opportunities that these technologies are capable of promoting.”
coinswitch
CoinSwitch Founder and CEO Ashish Singhal and Co-Chairman Blockchain and Crypto Assets Council (BACC) said, “We welcome the government’s decision to introduce a central bank digital currency (CBDC) to accelerate digitization. It also believes that various budget measures to improve adoption of digital payments will involve more digital-savvy Indians in the financial ecosystem who are keen to explore new forms of investment and wealth creation.
Singhal further said, “The budget provides clarity on taxation and reflects the government’s intention to adopt a business-friendly approach while protecting the interests of consumers and the exchequer. We look forward to working with the government to help bring crypto-asset taxation on par with other asset classes and participate in the central government’s approach to fostering economic growth.
giotas
Vikram Subburaj, CEO of Jiotus crypto exchange, said, “We are delighted with today’s announcements. It is a relief to a lot of investors that the government is recognizing the crypto asset ecosystem and has made efforts to bring clarity on its taxation in this country. legalizes crypto assets in the U.S. and paves the way for a formal umbrella of regulations going forward.”
He further added, “A standardized 30% tax treatment is welcome, however we await details on what is a taxable event and what is the limit of 1% TDS deduction. We expect the government to provide exchanges and other businesses. TDS deduction and a fixed time period to enable the technology behind bookkeeping.
What cryptocurrency exchanges have to say about the new 30% crypto tax, this post first appeared on BGR India.
