Union Budget 2022: Booster Dose For Crypto Industry In India

The crypto industry in India got its booster dose from the regulators which was pending for a long time. We are delighted to see some concrete discussion around crypto in the Union budget by the honorable Finance Minister.

The most significant development is the 30% tax on the income from the transfer of digital assets, which clearly shows the government's inclination towards legalizing crypto in India. The cost of acquisition of crypto assets to be allowed as a deduction is expected to drive mass adoption of crypto and boost investor confidence.

The 30% tax structure was always there within the crypto ecosystem in India but a formal announcement by the finance minister will further strengthen its implementation. The 1% TDS is new for the industry and we will have to wait for finer details to gauge its effect on the crypto trading in India.

The crypto investors in India must be extremely satisfied with this announcement as they can now execute crypto trading without any fear. The positive move by the regulators will legalize the billions of dollars invested by Indians in crypto assets and create a new tax revenue stream for the government.

RBI has always been ambitious with its CBDC launch. The launch of CBDC by RBI will catalyze the growth of blockchain infrastructure in India and will encourage more entrepreneurs to join the blockchain revolution.

If RBI allows the trading of CBDC on private exchanges, it will add a new dimension to public-private partnerships in India's fintech space. The launch of RBI's CBDC will prove to be a momentous occasion for the digital asset industry as it will create a government-approved market for the launch of new/existing digital assets.

(By Shivam Thakral, CEO of BuyUcoin, a homegrown cryptocurrency exchange)