Coronavirus | Companies hopeful that Cryptocurrency will be regulated during Budget

The industry in India is growing rapidly, but it is plagued with uncertainties since the government is yet to clarify its position on it. Companies are hopeful that the bill for Cryptocurrencies will be regulated and classified as assets during the Budget announcements this year.

At a time when the nascent and rapidly growing industry in India is tiding through a lot of uncertainty and uncertainty, the Union Budget should focus on regulating the sector by classifying cryptocurrencies as an asset class for India and providing regulatory clarity in terms of tax applications for them, said Om Malviya, President, Tezos India.

One of the best ways to dismantle a regulatory body would be that of the criptocurrency regulator that overlooks both the coin and the blockchain players, because of the fact that it is considered a threat to the financial structure.

Malviya said that this is bound to give a boost to the realisation of Digital India without the threat to the existing financial and banking structure of the country.

There are a number of proposals and incentives for research and development around the public blockchain-oriented use-cases such as NFTs, smart contracts, Defi, given the immense economic and job creation potential of the technology and Web 3. He said that they will be welcome.

The budget session is slated to hold a meeting on the Cryptocurrency Bill which is due to be released in the near future. The bill is expected to detail the regulatory considerations surrounding cryptocurrencies. In this year s budget we expect the government to make major changes to the Income Tax Act of 1961 with regard to the taxability of cryptocurrencies in India. The application of GST on trading and brokerage activities would be clarified, said L Badri Narayanan, Executive Partner, Lakshmikumaran Sridharan Attorneys.

The government might consider levying TDS TCS on sale and purchase of cryptocurrencies above a certain threshold, and whether such transactions could be brought within the ambit of Specified Financial Transaction SFT Narayan.