The Indian government has finally taken its first steps towards recognizing the crypto sector in the Union Budget 2022. It has brought both; glad tidings & mixed feelings throughout the crypto ecosystem in India.
While presenting the union budget on Tuesday, the FM announced a flat 30% deduction on income from virtual digital assets and a TDS of 1% on virtual digital assets transfers(including gifts in virtual digital assets). The 30% tax is to be paid irrespective of the income slab. Since the majority of the population comes under a tax-free slab or are used to paying rates like 10% or 20%, most of the taxpayers believe it’s quite impractical to impose such a high tax.
Similarly, 1% TDS on virtual digital assets transfers also has drawbacks. In the blockchain ecosystem, an investor might have multiple wallets. If 1% TDS is charged on each transaction, imagine the aggregate one has to pay if he transfers his cryptocurrencies from one wallet to another.
With the government finally clearing the air, there are increasing interests one can see among Indian citizens. All who wish to participate in crypto investments can do so now. The regulated crypto environment will provide the much-needed propulsion to skyrocket developments in the crypto ecosystem in India.
As per the recent article by Reuters.com, Industry estimates suggest there are 15 million to 20 million crypto investors in India, with total crypto holdings of around 400 billion rupees ($5.37 billion). No official data is available on the size of the Indian crypto market.
The government’s move towards embracing crypto unlocks tremendous opportunities for startups to explore this market and grow exponentially. Startups that were skeptical about entering the blockchain space & creating innovative products can now do it all without any hesitation. VC firms & investors will now invest in unique products/solutions more confidently as the landscape of cryptos has begun to transform in India.
We at Block On are doing our bit to encourage the blockchain startup ecosystem. Block On is a Gift City SEZ, Gandhinagar-based, worldwide blockchain venture builder / Vc firm providing incubation, acceleration, and advisory support to global innovators with blockchain-based visions since 2013.
We firmly believe in empowering the startup ecosystem with the right knowledge, contacts, visibility, and funds. We focus on five strong pillars imperative in fostering the growth of startups. Our center of excellence for blockchain, Blockchain village at Iskander, Malaysia, has been living by the same and expanding the adoption of Blockchain technology.
In addition to our client services, we are premier hosts of the most impactful Crypto and Blockchain events in the ASEAN region and beyond. We work with our global community to design, coordinate and support the highest caliber of blockchain events around the globe. Our mission of organizing events is to engage and educate the cypherpunks and noobs curious to enter the blockchain space. Our extensive network of blockchain enthusiasts, interested parties (like governments), and thought leaders provides a fertile ground for our attendees to learn, develop partnerships and grow their visibility in this rapidly emerging space.
Our network is global, and our followers too. Block On Group has created & co-organized 80+ events attended by 24,000+ people, supported by 1500+ speakers, over 500 sponsors, and 100+ media partners like Forbes, CNN, and Bloomberg.
To enhance the quality of events, we endeavor to focus on all the aspects that contribute to the blockchain ecosystem. Increasing awareness & promoting advocacy for blockchain & crypto adoption in the region, we have organized multiple events addressing the regulations around cryptos.
In partnership with Khaitan & Co, Block On organized a webinar on Cryptocurrency In India: What the Future Holds. It featured the renowned regulatory expert Mr. Subhash Chandra Garg. He is the former Economy Affairs Secretary & Finance Secretary of India. He expressed his views on the status of Cryptocurrencies in India, their future & everything in between. Other participants in the webinar were Nishchal Shetty- Founder and CEO, WazirX, Sanjay Khan Nagra- Partner, Corporate and Commercial Practice, Khaitan & Co, Siddharth Sogani- Founder & CEO, Crebaco, and many others. Followed by a networking event hosted by Block On in association with Inblox Network & WazirX, this event convened people from the Blockchain & Crypto space. Participants communicated and expressed their views on the supportive crypto regulations.
Block On in partnership with 1.21 GWS presented the World Blockchain Conclave that brought together the major exchanges from around the world. It brainstormed & analyzed the significant impact of blockchain on payments, finance, insurance, energy, IoT, music industry, etc. It also discussed the opportunities & challenges that blockchain will present to them & the possibilities of collaborating with Enterprise Blockchain Giants.
Our other achievements include our group company Crebaco’s contribution to creating and suggesting the regulatory framework along with Khaitan and Co, later submitted to the Indian government for insights.
Block On sponsored the Letcon’s panel discussion on India’s Atma Nirbhar Crypto Mission: Before and After Today’s Regulation! It explored the shortcomings of Blockchain-based companies and provided suggestions on strengthening the startup Blockchain ecosystem in that time’s unregulated crypto landscape.
Block On also launched and aggressively supported the digital crypto movement #indiawantscryptoregulations that focussed on promoting advocacy for regulating cryptos & taking it to new heights in the region. Later last year, we penned down an inspiring article on the occasion of Gandhi Jayanti that expressed the genuine need to regulate cryptos in India due to their limitless advantages. It explained how India is fighting a crypto freedom movement and the need to recognize the crypto sector.
Apart from these, Block On has shared the stage with the government of India multiple times for blockchain events. Those events entailed discussions around the Crypto and Blockchain scenario in India.
The Indian crypto community is looking at the positive aspect of cryptos finally gaining some recognition in the country. Some of the crypto-friendly countries in the Asian region like Malaysia, Singapore, etc., are yet to create independent associations that actively represent the crypto industry wherever the need be. Once nations understand the positive impact of implementing blockchain across multiple sectors, such issues can be addressed efficiently. It is the right time for communities to come forward, form associations & oppose this move of the Government.
Now that the dawn has broken & the air is clear, we anticipate the blockchain ecosystem to flourish with as many innovative products as possible. Block On will always be there to provide the fuel & acceleration to promising startups with our pillars. Let us see what’s in store for the Indian crypto ecosystem now that the cryptos have been recognized as virtual digital assets.