Clarity over proposed law & blockchain technology: What crypto sector wants from Budget

Crypto exchanges & investors are anxious over the fate of cryptocurrencies that hangs in balance as the Bill was not discussed during the Winter Session of the Parliament

e4m by Kanchan Srivastava
Published: Jan 31, 2022 8:48 AM  | 3 min read
Budget 2022

The Union Budget 2022 will be presented on February 1 by Union Finance Minister Nirmala Sitharaman. All sectors of industry have high hopes for this year's Budget due to the prevailing Covid-19 pandemic situation. Amid the crisis, the crypto exchanges and investors are anxious over the fate of cryptocurrencies as the Bill in this regard was not taken into consideration during the Winter Session of the Parliament despite the government proposing a regulatory framework for the unregulated crypto sector.

The stalemate over such a big financial sector has made the crypto exchanges, players and investors look forward to the budget with high hopes. Stakeholders hope that a regularized environment will encourage more Indians to start their crypto investing journey, promoting financial inclusion in line with the government's vision.

Sharan Nair, Chief Business Officer, CoinSwitch Kuber, says, “Various macroeconomic developments in India and the world over the last year have led to a rise in crypto adoption in India. Today, leading crypto exchanges follow strict self-regulatory practices to ensure customer protection. We hope the upcoming Union Budget will bring in regulatory clarity and help standardize best practices, address misconceptions around this emerging asset class.”

The budget must find ways to provide a groundswell in the adoption of blockchain technology in the meat and bones of the largest democracy in the world, says Pratik Gauri, Co-founder & CEO, 5ire. Gauri notes, “Crypto technology and blockchain are long-term phenomena that are not going away. And as the government regulations focus on protecting its constituency from the bad it does, it should also look towards utilizing its power of good for better governance and accountability.”

Neeraj Sharma, VP, Globale Media, echoes the sentiments. Crypto is going to fuel the next version of the internet, Web 3.0. Plus there are multiple other digital assets like NFTs, etc which will help India create a strong base on its journey towards becoming a $5 trillion economy,” Sharma asserted.

Foreign players who have entered the Indian markets or planning to do so too have their fingers crossed.

Charles Tan, Head of Marketing at Coinstore, a Singapore-based crypto exchange that recently entered India, stated, “We have recently started our operations in India, placing close to 10 team members and still looking to expand. We are highly optimistic about the business regulations in this part of the world. In order to expand faster, we look forward to positive announcements for foreign digital asset exchanges which will enable them to become a part of India’s growth story.”

Tan further added that clarity on crypto regulation and taxation will be helpful in creating a long-term business plan for his operations in India.

A pre-Budget expectation survey conducted by Grant Thornton Bharat reveals that nearly 79 percent of the respondents feel that the government should increase regulatory focus around cryptocurrency and non-fungible tokens (NFTs). The youth of India also expects the country to launch its own official cryptocurrency in 2022. This is driven by the perceptions of it being more secure due to clear regulations laid down by RBI, Kantar has found in its survey.

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