As India approaches the Union Budget 2025, the crypto industry is eagerly awaiting clear and supportive policies. As blockchain technology and virtual digital assets (VDAs) are fast evolving, industry leaders are pushing for fair tax rules, better regulations, and more investment in blockchain.
The Need for Clear and Balanced Regulations.
According to the crypto industry, India requires a balanced regulatory framework to achieve stability and growth. Vishal Sacheendran, Head of Regional Markets at Binance, emphasizes that clear and forward-thinking regulations are important. Policies should protect investors, promote transparency, and encourage innovation, he adds.
He also emphasized that policymakers and industry leaders have to collaborate for flexible rules adaptable to the changing crypto landscape. With the proper regulatory approach, India can turn into a hub for Web3 adoption, where investment and the best talent may be attracted.
Revisiting Tax Policies for Crypto Growth.
Most experts feel that India’s present taxation rules on crypto are too harsh and discourage participation. Vikram Subburaj, Giottus CEO, has said that the 30% tax for gaining profits on crypto, as well as the 1% TDS in every transaction, have to be reduced to 0.01%. He believes that after the reduction, these changes would improve liquidity, attract more retail and institutional investors, and, overall, boost market participation.
He also presses that India needs to allow netting of gains and losses to offset taxation, which forms the common nature in global markets. Besides that, he argues for the involvement of the government to support grants and partnerships regarding blockchain R&D, which helps enhance the overall strength of Web3 in India.
Tackling TDS and Market Transparency.
Ashish Singhal, Co-founder of CoinSwitch, has also raised concerns about TDS policies. He suggests reducing the TDS from 1% to 0.01% and increasing the tax limit from ₹10,000/50,000 to ₹5 lakh. These changes, he says, will ease the tax burden on small investors and improve overall market transparency.
He also thinks that crypto should be taxed like any other asset class, and then investors can set off losses. This would make crypto investments fairer and more attractive to individuals and institutions.
1️⃣1️⃣ Anticipating India's Budget 2025: Crypto Industry's Hopes and Expectations
— MrHype (@MrHypeOfficial) January 19, 2025
As the Union Budget 2025 approaches, India's cryptocurrency sector is advocating for significant reforms to foster growth and innovation.
Summarized Key Expectations:
⭕️ 𝗥𝗲𝗱𝘂𝗰𝘁𝗶𝗼𝗻 𝗼𝗳… pic.twitter.com/ENY0M738YT
Formalizing Crypto as an Asset.
Raj Karkara, the COO of ZebPay, says India needs to classify crypto as an official asset class. He feels that there needs to be proper rules and guidelines on classifications, taxation, and compliance for this sector to flourish and attract investments.
He further talks about giving blockchain and Web3 startups tax breaks and incentives in order to compete with other players in the crypto market worldwide. Institutional investors, therefore, could be made comfortable with entry based on clearly stated security and compliance measures.
Glimpse of Crypto under Budget 2025.
The budget to be presented will be very crucial in deciding the future of the crypto industry in India. Stakeholders are hopeful regarding the same, but they also understand the challenges so there are a lot of uncertainty. The government will decide whether India will be at the forefront of digital finance or lag behind the rest of the world embracing blockchain and crypto.
Bringing into place fair rules, tax savings, and creating innovation will really help India blossom into a profitable crypto space and help both parties, the economy and investors alike. Now everyone waits with baited breath over Budget 2025 to look if the govt is now taking a pro-active approach rather than leaving industry waiting for answers.
