Cryptocurrency trading and investment platforms in the country want the government to have a clear framework on virtual currencies and have high expectations of the Union budget for 2023. India Today TV contacted cryptocurrency experts and partner companies about your budget expectations.
The cryptocurrency sector has urged the government to introduce a clear framework for virtual currencies. (Photo: Reuters)
By Ashutosh Mishra: The fate of cryptocurrencies in India hangs in the balance as the Reserve Bank of India (RBI) prepares to launch its own digital currency.
Cryptocurrency trading and investment platforms in the country want the government to have a clear framework on virtual currencies and have high expectations of the Union budget for 2023. India Today TV contacted cryptocurrency experts and partner companies about your budget expectations.
Kumar Gaurav, founder and CEO of Cashaa, said: โAfter having launched the electronic rupee, we expect the government to introduce more regulations for cryptocurrencies. Estimates point out that cryptocurrency ownership in India is almost double compared to the rest of the world. That being said, the government is more likely to introduce a regressive tax on cryptocurrencies."
Read also | Budget 2023: Is there any relief in store for India's middle class?
Vikram R Singh, founder and CEO of Antier, said that the budget should take decisive steps to take India to the next phase of the Web3 economy by promoting disruptive internet-enabled technologies like blockchain, metaverse, NFT and DeFi. โThe government should ensure accelerated implementation of the regulatory framework for cryptocurrency exchanges, increase the TDS exemption limit for virtual digital assets, and offer relief on cryptocurrency taxation,โ he added.
Amanjot Malhotra, Country Head of Bitay, said: โThe FY23 budget proposed that profits arising from virtual digital assets or crypto assets be taxed at a flat rate of 30 percent. In addition, a tax of 1 was introduced. percent deducted at source (TDS) on every transfer of such assets.VDA volumes in India have suffered significantly after the introduction of 1 percent TDS, but interest from Indians has remained virtually unabated. changes ".
โIndian exchange volumes have fallen by almost 90 percent, while the adoption of foreign exchanges by Indian users has seen a massive increase. The high TDS fee, which was introduced to track the movement of crypto assets, has only pushed transactions abroad. Not only have Indian consumers been left to trade on foreign exchanges, but their VDA activity is also not being tracked,โ he added.
Read also | Budget 2023: Government can set lower nominal GDP growth, says report
โI appreciate and support the goal of tracking VDA transactions, but this goal can still be achieved with a lower TDS rate of 0.01 percent. Appropriate policy amendments will not only improve industry sentiment, including users, exchanges, and web3 projects while meeting required regulatory requirements, but are likely to reap long-term benefits that drive the narrative of India's digital economy,โ Malhotra said.
โWhile the government introduced cryptocurrency taxes in the last budget, it failed to address the legality of such assets, a long-standing demand from the industry. While attempts have been made in the past to introduce a bill to regulate cryptocurrency crypto assets, the roadmap for such legislation is still unclear. Reports suggest the government is in the deliberation stage on a crypto bill," he added.
Rajagopal Menon, Vice President of WazirX, said: "In the upcoming budget, we expect the following developments in the crypto ecosystem Virtual Digital Assets (VDA) Classification as a regulated asset class and a 1 percent TDS sale transaction, which should be urgently abolished or repealed, because it causes investors to lose capital with every trade and discourages potential investors from participating in this market. The buyer deducts this amount from the amount owed to the seller."
Sakina Arsiwala, Co-Founder of Taki, says, "This budget presents an opportunity to bring clarity to the Web3 ecosystem in India with well-considered laws, regulations and investment prospects for the sector."
Read also | Five charts showing India's budget outlook for 2023
โWe are hopeful that India will further strengthen its regulatory design in favor of the development of the crypto industry, and we wish to have more streamlined and regulated measures for private VDAs (virtual digital assets). Furthermore, it is imperative to have clarity on crypto laws to encourage people to learn more about the emerging market with less fear,โ Arsiwala said.
