Five takeaways from the Budget 2022: From a crypto business and investor lens

cnbctv18.com:

The Indian government expressed its interest in the crypto sector the previous year when it commented on drafting regulations for the industry. While most expected the government to come up with a crypto bill in the parliamentary session, the announcement of taxation of crypto assets during the budget 2022 was a welcome surprise for the Indian crypto industry.

Now, with the new developments in the block, the status quo of the crypto sector is finally set on an exclusive path.Clearly, the taxation policy on crypto and even the government's digital currency announcement hint at a much bigger picture. While the taxes being levied and their impact needs to be thoroughly researched before any substantial remarks can be made, the budget 2022 offers the following five key insights:Crypto as a virtual asset classThe inclusion of crypto assets in the taxation mechanism has given the industry the much-awaited recognition that it deserved.

As a result, it has positively shaped the perception of potential crypto investors who were uncertain about its legal position in India. Investors who’ve been Interested but sat on the sidelines can finally participate in crypto now with its acceptance as a virtual asset class.Likewise, the tax announcement brings trust and stability to the Indian crypto industry as we all gear up to embrace its innovation across all sectors.

Mainstreaming this growing virtual asset class also delivers diversity to our overall investment portfolio and hedge as per risk-taking capacity. Reformed Legal Crypto MarketAn essential aspect of the taxation framework is that the government is receptive to the changing face of investing in the country. The introduction of tax policies is a significant step to show the