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Business News/ Budget / Budget 2022: CoinSwitch, WazirX, CoinDCX CEOs welcome govt move on crypto taxation

Budget 2022: CoinSwitch, WazirX, CoinDCX CEOs welcome govt move on crypto taxation

  • Taxation of virtual digital assets or crypto gives much-needed clarity and confidence to the industry, said CoinDCX Co-Founder and CEO Sumit Gupta

CoinSwitch CEO Ashish Singhal (left) and WazirX CEO Nischal Shetty (right).

Union Finance Minister Nirmala Sitharaman, in her Budget 2022-23 speech on Tuesday, announced plans to start a digital currency and tax crypto assets, as the country keeps pace with the global move toward virtual financial instruments.

Income from the transfer of any virtual digital assets will be taxed at 30%, the finance minister announced in her budget speech.

READ : Cryptocurrency tax introduced in budget 2022. Details here

Here's how India's crypto industry has reacted to Budget 2022:

CoinSwitch CEO Ashish Singhal

We welcome the government's decision to introduce central bank digital currency (CBDC) to accelerate digitization. We also believe that various budget measures to improve digital payments adoption will induct more digital-savvy Indians into the financial ecosystem willing to explore newer forms of investing and wealth creation.

The regulatory guidance on tax from the government furthers the mainstreaming excitement of this emerging asset class with over $6bn worth of investments in India.

It is also the gateway to the future decentralized world, aka Web3.0. Today’s digital-savvy Indians are willing to experiment with this emerging asset class.

The budget provides clarity on taxation and shows the government’s intent to take a business-friendly approach while protecting the interest of consumers and the exchequer.

We hope to work with the government to help bring crypto-asset taxation at par with other asset classes and participate in the central government’s vision to promote economic growth.

Sumit Gupta, Co-Founder and CEO, CoinDCX

On Budget - The budget is forward-looking and inspirational. 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.

On taxation - Taxation of virtual digital assets or crypto is a step in the right direction. It gives much-needed clarity and confidence to the industry. India's focus on digital innovation and the promotion of blockchain technology is welcome.

On CBDC - Introduction of CBDC sends a clear signal of India being a digital-first, efficiency-driven, and transparency-led system. CBDC with the backbone of Blockchain will help us hold a powerful position in the global economy. We welcome the move and congratulate the govt for this visionary move.

WazirX CEO Nischal Shetty

India is finally on the path to legitimising the crypto sector in India. It's phenomenal news that India launching a blockchain powered Digital Rupee is phenomenal news. This move 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.

Overall, it's good news for us, and we will need to go through the detailed version of the budget to understand the finer details.

The tax clarity is a welcome move. Overall, it’s a huge relief to see that our government is adopting the progressive stance of going ahead in the direction of innovation. By bringing in taxation, the government legitimises the industry to a large extent. The majority of people, especially corporates, who have been sitting on the sidelines because of uncertainties will now be able to participate in crypto. Overall, it’s a positive move for the industry

Archit Gupta, Founder and CEO, Clear on Cryptocurrency & ITR

Government has brought in 30% tax on cryptos income, where no deduction for any expenses except cost of acquisition shall be allowed. Gift of virtual assets shall also be taxed for the recipient. This clears the air on taxes for cryptos, however, there are several types of incomes people earn from cryptos and hopefully more clarity will be available in the Budget documents.

Piyush Gupta, CEO, Polytrade

The announcement to introduce Central bank digital currency (CBDC) by Nirmala Sitharaman, the hon'ble finance minister in Budget 2022 is an encouraging development. The remark is a testimony that the government is supportive of utilizing digital currency for larger masses.

The adoption of CBDC will improve and make it easier for people to use Polytrade with the supporting infra provided by the govt. The development will make digital currencies more accessible to the people just as UPI made digital cash easier to use. We expect that in near future the government will continue to support and encourage digital currencies that will propel the GDP to $5 trillion as envisaged by our PM Narendra Modi.

Gaurav Kapoor, Director & Co-Founder, Fincorpit Consulting Private Limited

In the last few years, Bitcoin has exploded in popularity in India. India has one of the largest markets for digital tokens, with over 10 crore cryptocurrency investors. The provision of a tax framework for virtual currency investments has long been a desire of investors. Nirmala Sitharaman, the finance minister, proposed a new tax structure for cryptocurrency investors.

The transfer of any virtual or cryptocurrency asset will be taxed at 30%, according to the Union Budget 2022.

In Budget 2022, the finance minister stated that no deductions other than acquisition costs will be allowed, and no transaction losses will be carried forward.

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