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Investors of crypto and coin exchanges believe that the tax is a little high but have welcomed this move as they believe this is the first step taken by the government to legalize this space. This would have been the first time that even though the tax slab is high but the move was cheered by industry. The tax clarification has meant that this asset class will now be regularized. As per provisional figures asset class portfolio in cryptocurrency is worth $6 billion in India. The numbers might be less but will definitely see a massive churning as the government has decided to regulate this space.
CEO of CoinSwitch, Aashish Singhal, has welcomed this move by FM Nirmala Sitharaman. Singhal’s company is one of the most prominent players of cryptocurrency startups in India. He has said that this industry will now be optimistic about bringing new people on board. Even though the government hasn’t given much clarification on its regulation, bringing it under tax slab has given the industry players a ray of hope. In post presentation, Nirmala Sitharaman was asked about digital currency regulation. She said that her government has not done any framework on regulating virtual digital assets or cryptocurrencies until now. An official digital currency bill is yet in progress, and clarity will be given only after the bill is raised in Parliament.
The industry not just cheered but welcomed the government move on introducing the digital rupee. RBI has done the framework and plans to launch it in the near future. This move will familiarize investors and people who haven’t yet invested in digital space with virtual assets. This move will build an appetite for the digital currency in India, and the trading volume in digital space will only grow, henceforth. Sitharaman concluded her answer on the regulation of digital currency by saying that the volume of transactions that have been done in this space has made it imperative to bring digital assets under a tax regime. She has also clarified that a flat 30% tax will be levied on earnings from digital currency, and no computation of income from this source will be added in total income.