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- The Central Bank is exploring ways to legalize it and make it operational in the country. It can only be possible if there is a need for digital currency in the country
- While the crypto trading has been witnessing consistent growth in the country, what is missing is clear regulations governing the space.
Crypto experts expect that Budget 2021 will regulate the cryptocurrency and boost the economy through the tax collection via crypto. RBI is exploring possibilities of whether there is a need for Virtual currency Vs fiat currency.
Like every year, Budget is one occasion that everyone looks up to. And this year’s Budget is no less different with expectations. Be it auto, defence, corporate, or crypto industry, the expectations from the Budget 2021 are quite positive and overwhelming.
Views of RBI, Central Bank and Government on legalizing Cryptocurrency in India?
To make cryptocurrency regulations more transparent for Indians and aid the ailing Indian economy, RBI is exploring whether there is a need for a digital currency vs fiat currency. As per the booklet of payment systems, which has been released by the RBI recently, that booklet highlights the journey of payment and settlement systems in India from 2010 to 2020.
No doubt, that the virtual currency or private digital currency has gained a lot of popularity in India of late, but the government is still not in the stage to accept the currency with open arms as they are sceptical about it. They are also very apprehensive about the associated risk. The RBI is still looking for the possibility as to whether there is a need for cryptocurrency in India.
On the other hand, the Central Bank is exploring ways to legalize it and make it operational in the country. It can only be possible if there is a need for digital currency in the country. Hence, from the upcoming Budget, crypto analysts and experts have many positive expectations from the government. Those are amendments in income tax, GST laws to accommodate crypto trading.
Expectation of crypto analysts and experts From the Budget 2021
Ashish Singhal, Co-founder and CEO, CoinSwitch Kuber states that the government should pay heed to the regulations regarding cryptocurrency in India. He said that While the crypto trading has been witnessing consistent growth in the country, what is missing is clear regulations governing the space. He further stated that the upcoming budget should bring more clarity towards taxation, putting millions of crypto investors at ease. It would be great if cryptocurrencies are treated as an intangible asset, which will, in turn, act as a huge booster for the crypto industry as it will clear the positioning of crypto under asset classes. Additionally, charging 18% GST is unreasonable if applied on the overall amount of crypto bought, instead of the fees. The traders are hopeful that the government will take cognizance of the potential that cryptocurrency holds and introduce relevant measures.
Founder and CEO, Bitex, Monark Modi believes that the country has been very positive in accepting the cryptocurrency as there is a spike in the trading volumes and the size of the community has also increased in cryptocurrency. But since there is not much clarity among people and the regulations are not in place, banks too are hesitant to give services to exchanges. The banks are blocking transactions of cryptocurrencies, which in turn impact the investors.
He informed that there is increasing cryptocurrency investment, but the real question is how such transactions and traders are being reported within the country. Since the crypto market is volatile, how to approach the market is used for capital gains. The tax on realization defines a lock-in effect. This has gained the investors’ interest more to retain their assets when the economy benefits from a difference in investment.
Crypto mining is also an important factor and should be considered by the government. Currently, the exchanges depend on the import of cryptocurrency by remitting funds, the government needs to consider practices in the upcoming budget that protect the interest of the cryptocurrency exchanges in India. This will also help in remaining the funds within the country.
Rahul Pagidipati, CEO, ZebPay believes that if the regulations are placed properly in crypto assets, it will significantly help the economy. He feels that the 2021 budget will bring healthy rules for crypto investors to benefit from the cryptocurrency and know-how to pay taxes correctly.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
