Budget 2021: A recognition for cryptocurrency can accelerate its contribution to the GDP, say expertsBudget 2021: The Reserve Bank of India (RBI) recently released a booklet on payment systems that coversthe journey of payment and settlement systems in the countryfrom the beginning of 2010 till the end of 2020.
Private digital currencies or virtual currencies or cryptocurrencies have gained popularity in recent years.
The government hasbeen skeptical about thecurrencies andapprehensive about the associated risks.
However, the RBI is exploring the possibility as to whether there is a need for a digital version of fiat currency.The central bank is also exploring ways to operationalise it, in case there is a need for the same.
From the upcoming Budget 2021, crypto experts seek amendments in income tax and GST laws in order to accommodate crypto trading.
(Also Read:Budget 2021: Amend Income Tax, GST Laws To Accommodate Crypto Trading, Say Experts)Here's what experts and analysts in the field expect for cryptocurrency fromBudget 2021:Monark Modi, Founder andCEO of Bitex:''India has seen phenomenal growth incryptocurrency trading volumes as well as the size of the community participating in this alternate investment class.
But due to lack of clarity and in the absence of regulation, banks are still hesitant in providing services to exchanges and have been blocking transactions related tocryptocurrencies, which is impacting investors.''''Also, due to growing investment incryptocurrency, there are many questions being raised on how such transactions and trades are being reported within the country.
Thecryptoindustry is volatile and a mark to market approach is usually used for capital gains.
Taxation on realization helps in defining a lock-in effect and this interests the investors more to retain their assets when the economy benefits from a difference in investment.''''Another aspect that requires government's approval iscryptomining, since presently, exchanges have to depend on the import ofcryptocurrency by remitting funds.
It is quintessential that the government considers practices in the upcomingbudgetthat protect the interest of Indiancryptocurrency exchanges and help funds remain within the country.Mr.
Rahul Pagidipati, CEO, ZebPay:Cryptoassets, properly regulated, can bring tremendous economic benefit.
The government's twin goals of promoting prosperity and protecting people from fraud and harm are our goals, too.
That's why we have world-class security, KYC, and AML policies.
We hope2021will bring healthy regulations forcryptoinvestors, so they can know how to pay taxes correctly and access all the potential of this revolutionary new asset class.