With less than a week to go until Finance Minister Nirmala Sitharaman presents her interim budget, players in India’s crypto sector are calling for a clearly defined legal framework and measures to address tax complexities. We expect the tax structure to be normalized.
The digital asset industry is looking forward to a more nuanced approach to outlining the definition of virtual digital assets (VDAs). In addition to this, implementing policies that encourage innovation and research and development will also be key to strengthening the country’s cryptocurrency industry.
“Tokenization of real-world assets is a $10 trillion opportunity and we are already seeing rapid progress in the area of tokenized RWA. Investment and innovation in these areas is urgent. If needed and nurtured with progressive policies, India has the potential to become a world leader in digital assets. Similarly, we request that the definition of VDA be amended, including explicitly excluding tokenized assets with proven underlying value,” said Manhar, Country Head, India Global Partnerships, Liminal Custody Solutions.・Mr. Garregrat said.
As AI and other advanced technologies become more prevalent, Mai Labs founder Tapan Sangal sees 2024 as the year for the blockchain industry to “move from fundamental learning to essential application of lessons learned.” I believe it will.
“From the upcoming Budget, our confidence in the government extends to rethinking the tax regime for the virtual digital asset industry and fostering a regulatory environment that best leverages technological innovation. Ethical considerations and strong regulation are paramount to prevent equality and manipulation,” Sangal said.
Manhar Galegrat also advocated for the removal of the 1% tax deduction at source (TDS), which has been an influential policy that inhibits participation in the domestic digital asset market.
“This incentive will attract investment, create highly skilled jobs, and solidify India’s position as a global leader in secure digital asset custody.” Similar to stocks, users can use digital assets to should be able to offset the losses associated with this, and this will encourage more startups to enter this space,” said Gallegrat.
For the country’s industry to flourish, it is important that the government not only regularizes taxes but also focuses on Web3 startups and creates special economic zones.
“The Web3 industry is looking forward to the Union Budget in the hope that it will provide new opportunities to support a thriving and responsible Web3 ecosystem in India. Many of India’s challenges in areas such as care have the potential to be solved,” said Nischal Shetty, co-founder of Shardeum.
According to Shetty, introducing certain domestic regulations in India to increase stability and providing dedicated funding for India-specific blockchain products will help the development of the Web3 ecosystem.
Shivam Thakral, CEO of BuyUcoin, emphasized the need for tax incentives and sandboxes, saying, “We need tax incentives and sandboxes to grow these seeds into growing startups. The initiative requires protection to encourage experimentation, which will create a new generation of jobs, propel India into the global DeFi and blockchain space, and enable economic growth. Vision By embracing cryptocurrencies in collaboration with India, India can leave its competitors in the shadows and lead the world towards a digitally inclusive financial future.”
With the provisional budget and the presentation of a full-fledged budget after the elections, the crypto sector is awaiting the introduction of a tax framework and nuanced legal regulations to unlock its true potential.
Unlock a world of benefits! From insightful newsletters to real-time inventory tracking, breaking news and personalized newsfeeds, it’s all here, just a click away. Log in here!