One of the world’s fastest-growing crypto hubs has been in regulatory limbo for quite some time now, but many are hoping this will change in a week’s time. On February 1, India’s Finance Minister Nirmala Sitharaman will present the country’s budget, and some are hopeful that she’ll talk about digital asset regulations.
Crypto regulations remain in a grey area in India.
The Asian country has gone through various stages of its crypto regulation, from the Reserve Bank of India (RBI) barring banks from dealing with digital currency firms to the government saying it will issue a blanket ban to parliament working on enabling regulations. However, none of them have stuck, and India lacks any definitive regulations for the rapidly growing industry. Earlier, Sharan Nair, the chief business officer for CoinSwitch Kuber, said that they are hopeful that the upcoming Union Budget will bring in regulatory clarity, help standardize best practices, and address misconceptions around this emerging asset class.
Indian crypto sector had written to the Finance Minister regarding crypto regulations.
As reported earlier, the Indian industry association Indiatech had written to the country’s finance minister, Nirmala Sitharaman, regarding crypto taxation. The association represents major Indian cryptocurrency exchanges, including Coinswitch Kuber, Wazirx, and Coindcx. In its letter, the association representing the crypto industry asked the finance minister for clarity regarding crypto taxation in the upcoming Union Budget 2022-23.
Indiatech had also urged the government to amend existing tax laws to include crypto assets. The industry association’s president and CEO, Rameesh Kailasam, told Ettech, “The budget should ideally offer coherent rules on direct taxation, and the GST Council should detail the applicability of taxation, else there will be confusion.”