Indian Crypto Community Hopes for Tweaks in Crypto Regulations in 2023

• Indian Union Budget 2023-24 will be presented on February 1, 2023, by Finance Minister Nirmala Sitaraman.
• The crypto community is anxiously awaiting the budget presentation.
• The community expects major changes in crypto regulations, especially based on tax regimes.

The crypto community in India has been anxiously awaiting the Union Budget 2023-24 which is expected to be presented by Finance Minister Nirmala Sitaraman on February 1, 2023, in the Lok Sabha. The expectation is grounded on the hopes for alterations in the tax regimes or some other rules that may result in the increasing demand for cryptocurrencies in India.

Notably, the present Union Budget is the fifth straight Budget that is presented under Nirmala Sitaraman. Supposedly, this would be the last Budget before the general elections in 2024.

Significantly, Dileep Seinberg, the founder of the decentralized payment network, MuffinPay told that the crypto industry is keenly awaiting the budget announcement:

Indian crypto investors are keenly awaiting the budget announcement from the finance minister in the early next month. Taxation tweaks or any new announcements will be keenly tracked by the traders as it will shape the crypto adoption in India.

It is to be noted that 2022 had been an unfortunate year for the crypto markets, bitterly shocked by the debacle of the prominent crypto exchanges like FTX and Terra, substantial falls in trading volumes, the collapse of stablecoins, liquidity and volatility issues, etc.

Specifically, while pointing to the hike in tax, Indian crypto markets faced dual tax trauma when the government imposed a 30% plus surcharge and cess along with a 1% deduction on virtual digital currency, shocking both the market and the investors.

Punit Agarwal, the founder of the crypto taxation company KoinX while explaining his expectations for 2023, said:

If 2022 opened doors for tax, 2023 might open doors to a better and more optimized tax regime for crypto investors across India.

In addition, Agarwal told that the profits on digital assets could have reduced taxes, firmly based on the fact that India is on its way to establishing a promising Web3 ecosystem.

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