Budget 2022: Crypto tax signals acceptance of virtual assets, say exchanges

While the legal experts have stated that the announcement made by the Union Finance minister, Nirmala Sitharaman of taxing keeping the taxation rate for virtual digital assets at 30 per cent will discourage crypto transactions, the industry players have welcomed the move.

Sumit Gupta, Founder and CEO, CoinDCX and Chairman, Blockchain and Crypto Assets Council (BACC) described 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. 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," Gupta said.
 
On the introduction of central bank digital currency, or popularly known as CBDCs, announced during the Budget speech by the finance minister, Gupta said that it 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,” he added.
 
Nischal Shetty, CEO of WazirX said that the announcement will remove any sort of ambiguity especially with respect to the financial institutions allowing transactions in cryptocurrencies.

“India is finally on the path to legitimising the crypto sector in India. It's a phenomenal news that India launching a blockchain powered Digital Rupee is a phenomenal news. This move will pave the way for crypto adoption and put India in the front seat of innovation,” Shetty said.
 
“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 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 to this development removes any ambiguity for banks, and they can provide financial services to the crypto industry," he said.
 
“Tax has always been applicable to gains on virtual digital currencies, but the ecosystem did not have clarity on it,” said Avinash Shekhar, CEO, Zebpay
 
“The move to tax virtual digital assets gives the entire ecosystem, including investors and exchanges, transparency on the road ahead. 30 per cent tax on income from virtual digital assets, while high, is a positive step as it legitimises crypto and hints at an optimistic sentiment towards further acceptance of crypto and NFTs across stakeholders in the country. The government has come a long way in its stance towards crypto from last February to today and we are confident that this will herald a new era of growth and innovation for India in a Web 3.0 world,” he added.