In the 21st century, cryptocurrency has been the most popular trend. It is something we hear a lot of people talk about these days. Despite the unregulated aspects of cryptocurrency, its popularity never decreased, it kept increasing every day, both in India and the whole world. It has been estimated, nearly 15-20 million cryptocurrency investors has total crypto holdings of above $ 5 billion. These numbers simply show the massive population of interested traders. As the investor base started growing rapidly, several crypto unicorns have started emerging. As we arrive in the new year, 2022, India's crypto ecosystem has been keen to hear the upcoming budget session on the new crypto bill. We do not know yet if the government will be mentioning it or not, they might mention it a few times or they might just take some more time to get some clarity about the introduction and implementation of the bill. But initially, people are expecting the government to introduce a crypto bill in the upcoming budget session. Some essential points are expected to be considered by the crypto industry of India in the upcoming budget session of the parliament.
The crypto players have their eyes fixed on some news about clarity over the taxation aspects of crypto and for now, there is no or very little clarity regarding that. The most common concerns about the taxation aspects include applicable tax rates, classification, TDS/TCS, and GST implications on the trading of cryptos. A forward-looking tax regime can help to boost innovations in the sector so it is expected that the government brings a specific provision for crypto.
Regulation is something that comes out to be an obstacle to the growth of crypto in the market. Both cryptocurrency and blockchain players should not be overlooked by regulatory bodies. As the number of stakeholders increases, the crypto industry is now looking for progressive regulatory guidelines. It would bring more stability to recognize crypto as a solid tradable asset under SEBI’s sight. Consideration of these aspects might help Indians to start their journey in the world of crypto.
The purpose of blockchain these days is tracing and verifying multiple transactions easily. Creating administrative models to leverage blockchains could also be a great initiative. Adoption of blockchain can make our cities get a lot smarter and technology driven by securing the transactions, reducing costs, and speeding up data transfer processing.
The budget of 2022 is very crucial for India's economic development by employing new tools and technologies. 2022 can be a very crucial and great year for the crypto industry of India, hoping to bring some clarity on taxation, regulation and classification of the cryptocurrency.