[Budget 2022] Top exchanges welcome 30pc tax regime on crypto income, CBDC rollout

Although India's blockchain and crypto industry is still awaiting a Crypto Bill defining these digital assets more clearly, leaders from the nation's top crypto exchanges reacted positively to the new digital assets tax regime and CBDC rollout plans.
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During the Union Budget 2022 speech today, Finance Minister Nirmala Sitharaman said income from the transfer of any virtual digital assets (such as crypto and NFTs) will be taxed at 30 percent.

Further, she revealed the government has proposed to introduce "a digital rupee using blockchain and other technologies issued by The Reserve Bank of India (RBI), starting 2022-23."

Although India's blockchain and crypto industry is still awaiting a Crypto Bill defining these digital assets more clearly, leaders from the nation's top crypto exchanges reacted positively to the new digital assets tax regime and CBDC rollout plans.

Ashish Singhal, Founder and CEO, CoinSwitch Kuber, and Co-chair, Blockchain and Crypto Assets Council (BACC), said:

"The regulatory guidance on tax from the government furthers the mainstreaming excitement of this emerging asset class with over $6 billion worth of investments in India. It is also the gateway to the future decentralised world, aka Web 3.0. Today’s digital-savvy Indians are willing to experiment with this emerging asset class."

According to Nischal Shetty, CEO and Founder, WazirX, the Budget showed India is finally on the path to legitimising the crypto sector in India, and expressed his bullish sentiment on the CBDC, saying that it will pave the way for crypto adoption and put India in the front seat of innovation.

"It's also interesting to note how our government is beginning to recognise crypto as an emerging asset class given how our FM was referring to it as a virtual digital asset. The biggest development today, however, was a clarity on crypto taxation. This will add the much needed recognition to the crypto ecosystem of India. We also hope this development removes any ambiguity for banks, and they can provide financial services to the crypto industry," he explained.

Crypto exchange founders like Nischal believe by bringing in taxation, the Government legitimises the industry to a large extent, and that the majority of people, especially corporates, who have been sitting on the sidelines because of uncertainties, may now be more willing to participate in crypto.

Sumit Gupta, Co-founder and CEO, CoinDCX, echoed Nischal's and Ashish's sentiments on the crypto-related Budget announcements being forward-looking.

"It has touched key points that'll help us create modern, powerful, digital, and sustained growth. We welcome the budget and congratulate the Finance Minister for a futuristic budget. It [taxation] gives much-needed clarity and confidence to the industry. India's focus on digital innovation and the promotion of blockchain technology is welcome," he said.

Besides welcoming the tax regime, ZebPay CEO Avinash Shekhar expressed his approval on India's CBDC plans, explaining that it would familarise citizens with the benefits and efficiency of virtual currency, thereby building an appetite for the crypto, blockchain and the multitudes of innovations and employment opportunities in the space.

 

"The Budget focused heavily on integrating technology across sectors, and the gradual acceptance of a digital currency, blockchain and virtual digital assets has the potential to make India a leader in this new paradigm of blockchain-enabled revolution," he said.

Edited by Megha Reddy

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