February started positively for the Indian crypto space receiving head-turning news. In her Budget Speech of 2022, India’s financial minister Nirmala Sitharaman declared a 30 percent tax on revenue from the transfer of virtual digital assets. She also added that no set-off would be permitted in case of losses. There won’t be any deductions and exemptions except the cost of acquisition.
Also, gifts of virtual digital assets (airdrops) would be taxed in the hands of the recipient. The Finance Minister further indicated that by 2023, a Blockchain-based and RBI-backed Central Bank Digital Currency (CBDC) would be implemented.
“Introduction of a central bank digital currency would offer a tremendous boost to the digital economy,” Nirmala Sitharaman said on Tuesday when presenting the government budget. “Digital currency will also lead to a more efficient and cheaper currency administration system.”
Indian government showers good news for crypto community
The crypto space on Twitter is flooded with excitement. Crypto investors, startups, and exchanges have tweeted, showing their support to the government for this initiative. WazirX CEO Nischal Shetty, one of the early supporters of crypto was elated. He has been regularly exhibiting his support for crypto with his hashtag #IndiaWantsCrypto. He tweeted, stating that this is the next step towards positive crypto regulations.
Right after the announcement, the native token of Wazirx(WRX) soared 31.49%, putting a smile on the investor’s faces.
India’s initiative to educate its ministers
Following a report released on Monday from the Lok Sabha, the Parliamentary Research and Training Institute for Democracies group inside the government has scheduled a training evening for parliamentarians on Wednesday.
The meeting is scheduled to discuss crypto and its implications on the Indian economy. In addition, the parliamentary agenda scheduled for the lower house of Parliament no longer includes a measure that may potentially outlaw crypto in the country. As per the report, the meeting will be held on Wednesday, 02 February 2022, from 02:30 P.M. to 03:30 P.M.
India’s clarity on crypto and regulation was long due. Investors and speculators have been longing for a healthy and positive setback from the government. Many think that the much-awaited wait was worth it because this step is a positive turn towards India’s initiative to regulate crypto. But the announcement of a beefy tax has also disappointed some investors.