CoinSwitch, WazirX, and CoinDCX CEOs Welcome Government Decision on Crypto Taxation

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Income from the transfer of any virtual digital asset will be taxed at 30%, the finance minister announced in her budget speech.

READ: Cryptocurrency tax introduced in 2022 budget. Details here

Here is how the Indian crypto industry reacted to the 2022 budget:

Ashish Singhal, CEO of CoinSwitch

We welcome the government’s decision to introduce Central Bank Digital Currency (CBDC) to accelerate digitalization. We also believe that various fiscal measures aimed at improving the adoption of digital payments will introduce more digitally savvy Indians into the financial ecosystem, eager to explore new forms of investment and wealth creation.

Regulatory guidelines on government taxation are adding to the widespread enthusiasm for this emerging asset class with over $6 billion in investments in India.

It is also the gateway to the future decentralized world, aka Web3.0. Today’s savvy Indians are ready to experiment with this emerging asset class.

The budget clarifies taxation and demonstrates the government’s intention to take a pro-business approach while protecting the interests of consumers and the Treasury.

We hope to work with the government to help bring the taxation of crypto-assets to the same level as other asset classes and participate in the central government’s vision to promote economic growth.

Sumit Gupta, Co-Founder and CEO, CoinDCX

On budget – The budget is forward-looking and inspiring. He touched on key points that will help us create modern, powerful, digital and sustainable growth. We welcome the budget and congratulate the Minister of Finance for a futuristic budget.

On taxation – Taxing virtual or crypto digital assets is a step in the right direction. This gives the industry much-needed clarity and confidence. India’s focus on digital innovation and the promotion of blockchain technology is welcome.

On the CBDC – The introduction of the CBDC sends a clear signal that India is a digital first system, focused on efficiency and transparency. CBDC with the backbone of Blockchain will help us gain a powerful position in the global economy. We welcome this decision and commend the government for this visionary decision.

Nischal Shetty, CEO of WazirX

India is finally on its way to legitimizing the crypto industry in India. It is phenomenal news that India is launching blockchain powered digital rupee is phenomenal news. The move will pave the way for crypto adoption and put India at the forefront of innovation.

It is also interesting to note how our government is beginning to recognize crypto as an emerging asset class given that our FM referred to it as a virtual digital asset. The biggest development today, however, was clarity on the taxation of crypto. This will add much needed recognition to India’s crypto ecosystem. We also hope that this development will remove any ambiguity for banks and that they will be able to provide financial services to the crypto industry.

All in all, this is good news for us, and we’ll have to skim through the detailed version of the budget to understand the finer details.

Tax clarity is a welcome step. Overall, it is a huge relief to see that our government is taking the progressive stance of moving forward in the direction of innovation. By introducing taxation, the government largely legitimizes the industry. The majority of people, especially businesses, who had stayed away due to the uncertainties will now be able to participate in crypto. Overall, this is a positive development for the industry

Archit Gupta, Founder & CEO, Clear on Cryptocurrency & ITR

The government has introduced a 30% tax on crypto income, where no deductions for expenses except the cost of acquisition are allowed. The gift of virtual assets will also be taxed for the recipient. This clarifies taxes on cryptos, however, there are several types of income people derive from cryptos and hopefully more clarity will come in the budget documents.

Piyush Gupta, CEO, Polytrade

The announcement of the introduction of central bank digital currency (CBDC) by Nirmala Sitharaman, the Honorable Minister of Finance in the 2022 budget is an encouraging development. The remark is a testimony that the government is in favor of using digital currency for greater masses.

The adoption of the CBDC will improve and facilitate the use of Polytrade with the supporting infrastructure provided by the government. The development will make digital currencies more accessible to people, just like UPI made digital money easier to use. We anticipate that in the near future, the government will continue to support and encourage digital currencies which will propel the GDP to $5 trillion as envisioned by our Prime Minister Narendra Modi.

Gaurav Kapoor, Director and Co-Founder, Fincorpit Consulting Private Limited

Over the past few years, Bitcoin has exploded in popularity in India. India has one of the largest digital token markets, with over 10 million cryptocurrency investors. The provision of a tax framework for investments in virtual currency has long been a wish of investors. Nirmala Sitharaman, the finance minister, has proposed a new tax structure for cryptocurrency investors.

The transfer of any virtual or cryptocurrency asset will be taxed at 30%, according to the Union Budget 2022.

In the 2022 budget, the finance minister said that no deductions other than acquisition costs will be allowed and no transaction losses will be carried forward.

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