Budget 2022 Expectations: Union Budget 2022 is just days away when the government announces that Finance Minister Nirmala Sitharaman will present this year’s budget in Parliament on February 1. The budget session will start from January 31 and will be in two parts. before budget session Lets start, the business sectors across India put forth their demands and expectations from the government regarding the new rules. This year, the cryptocurrency industry, which has recently come under the scrutiny of the Center and the Reserve Bank of India, has put forth its speculations and expectations from the government amid discussions to introduce a cryptocurrency regulation bill in Parliament.
Experts are seeking to treat cryptocurrencies as an asset class and are expecting a new regulation for the same in the meantime Union Budget 2022,
“The industry awaits official communication on the proposed crypto bill. We believe regulatory clarity will bring clarity and encourage more Indians to start their crypto investment journey. We expect the regulatory framework for crypto-asset investments to be four Will focus on key areas,” said Ashish Singhal, Co-Chair of the Blockchain and Crypto Assets Council and Founder and CEO of CoinSwitch Kuber.
Singhal listed four main areas of concern as crypto classification, regulatory framework, standard KYC and regulatory. “Crypto should be classified as an asset. It is similarly regulated in many other countries, and almost all use cases of crypto are an investment and not a payment,” he said. Emphasizing for a proper framework and bringing in KYC procedures. A proper reporting structure should be put in place, Singhal said.
“In the upcoming budget, we expect the government to consider levying TDS/TCS on sale and purchase of cryptocurrencies. This could be a turning point for the crypto industry. We expect the government to consider amending the income tax laws for tax cryptocurrencies – expected to be levied above a certain threshold, and such transactions may be brought within the scope of specified transactions for income tax reporting purposes ,” said Vikas Ahuja, member of BACC and CEO at Crosstower India.
“Furthermore, we are also expecting that the Bill will seek and promote an ‘official digital currency’ which will be issued by the Central Government and the RBI and will be referred to as a ‘cryptoasset’ instead of a ‘cryptocurrency’ – Seeing it as an emerging asset,” he said.
According to Om Malviya, President, Tezos India, the industry is currently facing a lot of ups and downs. “At a time when the nascent yet booming crypto industry in India is passing through a lot of uncertainty and volatility, the upcoming Union Budget for India will regulate the sector by classifying cryptocurrencies as an asset class and providing regulatory clarity. The major focus should be on doing the conditions of tax applications for them,” he said in a note to News18.com.
“Furthermore, the government could also consider the roll-out of a broader self-regulatory body or group for players in the cryptocurrency and blockchain sector – which in turn is bound to promote the realization of their vision,” he said. Said, ‘Digital India’ is being seen as a threat to the existing financial and banking infrastructure of our country without crypto.
The government was set to introduce a new bill regulating cryptocurrencies in the winter session of parliament, but it did not go as planned. “Finance Minister Nirmala Sitharaman had earlier said that the cryptocurrency sector cannot be ignored any longer. The Supreme Court of India struck down an already imposed ban by banks on cryptocurrencies. This sector can be furthered towards a progressive boost during the period,” said Edul Patel, CEO and Co-Founder, Mudrex.
“The government had said that they can classify cryptocurrencies on the basis of use cases. It will also help in the taxation aspect. The sector will do better with the government’s progressive regulations.”
However, Kumar Gaurav, CEO of Casa, said that there is no way for the government to ban cryptocurrencies. “They can of course ban the legitimate use of crypto which will only make it difficult for a layman who does not understand what they are involved in. However, what we understand is that the Indian government is on the lookout for scams going on. Trying to crack down on it. In the name of bitcoin,” he said.
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