Budget 2022: Here is what India's crypto industry expects amid uncertainty around regulation
1 min read 19 Jan 2022, 01:25 PM ISTThe industry expects the upcoming Union Budget to bring in regulatory clarity with respect to cryptocurrencies
PremiumThe Indian government has worked on preparing a bill to regulate cryptocurrencies, which was expected to be presented to the Parliament in the Winter Session in November. Since it was not mentioned during the period, experts believe the government might mention it in the February budget.
"Today, leading crypto exchanges follow strict self-regulatory practices. We hope the upcoming Union Budget will bring in regulatory clarity and help standardize best practices, address misconceptions around this emerging asset class. We believe a regularised environment will encourage more Indians to start their crypto investing journey," said Sharan Nair, Chief Business Officer, CoinSwitch Kuber.
India has had a hot-and-cold relationship with digital currencies in the past few years. In 2018, it effectively banned crypto transactions, but the Supreme Court struck down the restriction in March 2020.
“We need to have a progressive regulatory framework that can create enabling environment where innovation can thrive in a legal way – and India’s entrepreneurs can create platforms that, not just India but the whole world we use. It is a moment in history that we cannot miss. We need to have a regulation out soon" says Saurabh Tripathi, Managing Director and Senior Partner, BCG.
Various macroeconomic developments in India and the world over the last year have led to a rise in crypto adoption in India.
"India's approach to crypto regulations has undergone a significant rethink over the past few years, and this year we can expect more nuance and clarity. The budget session this year would shed more light on the next steps in developing regulations, if not table and discuss the bill itself in the parliament. A crypto regulation will have to focus on identifying, monitoring and managing risks in the ecosystem," said Vaibhav Kakkar, Partner, Saraf & Partners.
Meanwhile, the union government is planning changes in the income tax laws to bring cryptocurrencies under the tax net, with some changes that could form part of the Budget next year, Revenue Secretary Tarun Bajaj had recently told news agency PTI.
