As the date for the presentation of Budget 2022 approaches, the concerns of cryptocurrency investors are increasing. On the other hand, startups related to cryptocurrencies are also seen to be very upset. The price of bitcoin is continuously falling. If Finance Minister Nirmala Sitharaman introduces strict rules to tighten the noose on cryptocurrencies in the budget, then this pressure will increase further.
In the last few years, the number of crypto startups in India has increased rapidly due to the great returns from crypto especially bitcoin. The number of crypto investors in the country has exceeded Rs 1.5 crore. If the government brings a favorable policy for cryptocurrencies in the budget, then India will become the largest market for crypto in the world.
The central government and the Reserve Bank of India (RBI) want to take a tough stand on crypto. Discussions have been going on at various levels in the government for some time regarding the regulation of cryptocurrencies. The government has announced to bring a separate bill in Parliament for crypto. Earlier this bill was planned to be introduced in the winter session of Parliament. But, as the church was not completed on this, it was postponed for the budget session.
Cryptocurrency-related startups believe that Finance Minister Nirmala Sitharaman should announce a policy regarding blockchain technology in the budget. The use of blockchain technology is increasing worldwide. Blockchain technology is used for mining cryptocurrencies. Institutional and angel investments are being seen in crypto and blockchain related startups right now.
If the government announces a policy in the budget to allow investment in startups related to blockchain technology, then it will help in increasing the use of this technology in the country. Due to lack of clear rules regarding this, institutions are not able to openly invest in startups related to this technology. Due to the strict stance of the government and RBI regarding crypto, they are afraid of losing their money.
Crypto startups say that the government should also explain the tax rules on investment in private cryptocurrencies like bitcoin and the profits from them. The head of a startup, speaking on condition of anonymity, said that many people have made big investments in crypto, but they shy away from talking about it openly. The reason for this is that the tax rules are not clear in this regard. In the budget, the Finance Minister can clear the picture about this.
Also read: Budget 2022 expectations: Stock market demands removal of LTCG tax, know what could be its effect
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