India’s Crypto Businesses Welcome Government’s Offer to Bring Clarity to Tax Regime, Regulations

The Indian crypto business community has welcomed the promise from a top finance ministry official to bring clarity to the current crypto tax regime by September. A top crypto business association called it an important step in bringing regulatory certainty for the digital asset industry in India.

The Indian government’s annual budget presented earlier this week left crypto investors in the country frustrated as it offered no steps to make the tax regime friendlier or offer any clarity on regulation. But Economic Affairs Secretary Ajay Seth told a media outlet on Thursday that the finance ministry will publish a “discussion paper” in September as a step toward bringing clarity to the tax regime.

Welcoming Seth’s announcement, Dilip Chenoy, chairperson of the Bharat Web3 Association, the apex body for Web3 technology companies in India, told The Shib Daily via direct messages on X: “Our stance, as a leading Web3 industry association, is that a healthy regulatory framework for digital assets will enable innovation while protecting the interest of millions of VDA (Virtual Digital Assets) users in India.”

India taxes gains from crypto transactions at 30%, without any deductions or exemptions. Additionally, a 1% tax deducted at source (TDS) is applicable on crypto transactions exceeding INR 10,000 (about USD120).

There were about 19 million crypto users in India in 2023, with around 40% of those aged between 26 and 35, data from Coinswitch shows.

Chenoy said the Bharat Web3 Association and its members will “actively “participate in the consultation process and will share our views and recommendations for drafting policy.”

“With a business-friendly policy framework and regulatory clarity, we are confident that India’s virtual digital asset industry can unlock tremendous economic value, facilitate job creation, and boost financial inclusion,” he added.

Chenoy pointed out that India has a unique opportunity to become a global leader in Web3 and blockchain technology by adopting a progressive and forward-looking virtual digital asset policy.

Gairika holds positions in BTC. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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