The sector hopes the government will allow crypto investors to offset and carry forward losses, leveling the playing field for virtual digital assets (VDAs) in India.
Crypto trading volumes in India plummeted by up to 90% after the last budget introduced a 30% crypto tax. The department has expressed a number of demands from the union budget in this situation.
The crypto industry expects FM Sitharaman to propose a suitable regulatory framework for domestic crypto exchanges. Further clarification on the impending cryptocurrency bill and a moratorium on cryptocurrency taxation are also on the wish list (currently at 30%).
Currently, the crypto tax front is definitely difficult for new investors and dealers entering this ecosystem. From vague tax oddities to the rise of TDS in crypto trading, there’s a lot to worry about, and as a result, crypto fans have specific expectations for his 2023 federal budget.
As the budget approaches, the first agenda item that seems overdue is government regulation. Cryptocurrency market. Bitcoin and other digital currencies have been around for over ten years. Nevertheless, the government has yet to decide whether to regulate the market. 2023 appears to be the year a decision should be made on this front.
Pratik Gauri, 5ire co-founder and CEO“Of course, it’s a concern that transaction volume is down by 85-90%, and Web3’s inability to attract investment in innovative startups will affect the big picture.” , as noted earlier, taxation of income and property is entirely the prerogative of the government, which has the exclusive right to impose and collect such dues.
What I feel is most important here is that the monumental change caused by Web3 will move the world from a “value capture” economy to a “value creation” economy. This will require a new set of rules that democratize creators’ access to resources and make value creation as rewarding as value acquisition. This implies a direct relationship between human capital and the consumer of its creation.
It is imperative that any tax regime does not hinder the development of Indian talent in Web3 and the overheated innovative environment India is experiencing these days.
Efforts to introduce a new CBDC show that the RBI and the tax system are committed to innovation. We look forward to working with them to create useful dApp, DeFi, and ReFi solutions. ”
Ankit Wadhwa, Rario Co-Founder and CEO “2022 has been a transformative year for the digital collectibles industry due to the growing popularity of digital trading cards and virtual digital assets with proof of ownership using blockchain technology, but the industry scales well in 2022. to around US$426 billion worldwide, and blockchain technology will help India rise significantly among the nations to become the undisputed world leader in the sector. We hope that the G20 presidency will also be used to drive innovation in blockchain technology, with India leading the way.
We welcomed the carve-out made by the Treasury in June 2022 in the definition of virtual digital assets (VDA) introduced in the February 2022 final budget. underlying tangible assets; (b) gift cards or vouchers; (c) mileage points, reward points or loyalty cards; It is a record that does not involve direct money. (d) subscriptions to websites, platforms or applications; We also sincerely hope that the definition of VDA will be further revised in the upcoming Finance Bill, which separates crypto-based tokens from non-crypto-based tokens and separates their respective tax regimes. Our digital player cards are on a custom-made Rario blockchain, completely crypto-agnostic and can only be purchased with fiat currency. ”
Preekshit Gupta, Vice President – APAC & MEA, Secretariat“The identity verification and fraud prevention industry in India is at the peak of exponential growth and we hope the upcoming budget will be a catalyst for this growth. Regulatory and policy reforms, such as the establishment of protection agencies, will ensure an environment conducive to the sector thriving, while the budget will provide financial incentives to foster innovation and encourage entrepreneurs to take part in risk orchestration. We also expect to encourage the adoption of solutions to address issues such as fraud prevention, data security, KYC compliance, and identity theft.
Over the past few years, the spread of mobile internet and innovation in the payment environment have accelerated the transition to a digital economy. However, these digital advances are also creating unprecedented opportunities for criminals to commit fraud. India is expected to have 900 million internet users by 2025, making it especially urgent to protect his online presence from scammers. Therefore, we expect the government to provide additional funding, incentives and tax exemptions to encourage businesses to build a robust data security infrastructure that furthers the government’s ‘Digital India’ vision.
Additionally, we need to focus on initiatives that help build awareness of the need for robust identity verification systems and raise consumer awareness to educate society at large. This enables everyone to have access to secure digital identities and a secure digital economy. This is also in line with the government’s vision of making India her $5 trillion economy in the next few years. All these measures will not only help the industry but also benefit the Indian economy as a whole. With Budget 2023, the cybersecurity industry can finally get the boost it needs to keep up with the ever-evolving digital landscape. ”
Rahul Paghidipati, CEO of Zebpay, said: Despite being a relatively new and untested market, the cryptocurrency industry is experiencing rapid growth in India, increasing the number of people expressing interest in investing in this asset class. Web 3.0 and blockchain It could add a staggering $1.1 trillion to India’s GDP by 2032.
For fiscal year 2022, the government has announced a surcharge of 30% or more plus excise tax and a TDS deduction of 1% for the transfer of virtual digital assets. While it’s great that the government has taken steps towards regulating the VDA, the 2023 budget will see a gradual regulatory framework by lowering the TDS and capital gains tax and leveling them with other asset classes. and ask the government to clarify taxation. such as stocks and bonds. This addresses ongoing concerns and uncertainties about the industry by ensuring transparency and allowing industry insiders to protect their users from any kind of black swan event like his FTX collapse. increase. A clear governance and regulatory framework will allow more people to invest in his VDA and gain financial freedom. It also transforms existing businesses through blockchain technology and fosters innovation to build new solutions for the industry to thrive further. ”
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