Market players think that cryptos can be viewed as an emerging asset because it is intangible, digital currency that uses advanced encryption to secure and verify transactions.
The notification of tax on crypto acquisitions in the Union Budget has raised the confidence of the crypto industry, especially the new players or startups. In the light of current growth across the globe, there are voices that India is hovering to appear as a global hub for crypto players and enterprises.
Budget 2022 explains that the Government of India does not consider cryptocurrency as a currency but as a virtual digital asset, said Vikas Ahuja, CEO of CrossTower India. he Government will treat cryptos as investments.
Indeed, India is honing its incredibly entrepreneurial skill, with large inhabitants of technology-driven young minds and budding startup culture.
On the contrary, Ishan Arora, Partner, Tykhe Block ventures, says that the tax is still relatively high for global crypto firms to be a destination.
By sharing more light around the sector, India will open up possibilities for the industry, Ahuja of CrossTower said.
According to Startup India, India is the third-largest startup ecosystem globally, with roughly 50,000 startups. Nearly 20 percent of these are technology startups.
With crypto-assets getting exposure and ‘near-to-legal status in India, the blockchain startups will follow innovations, particularly the NFT marketplaces.
India’s GDP can be raised by blockchain technology and alter various sectors, starting from — government projects, healthcare, supply chain, financial services, among others.
The move is anticipated to boost innovation in the blockchain sector, with startups growing in the future, said Ahuja of CrossTower India. “Since India is a startup hub, which may help it become a leader in the fast-growing digital asset industry.”