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Below are Views On Union Budget Expectations - Cryptocurrency By Monark Modi, Founder & CEO, Bitex

Bitex Founder and CEO Monark Modi said,

“Just like any other financial markets that have matured in India owing to regulations, cryptocurrency investors have similar expectations from the government from this budget that will help this new financial market move towards certainty.   

India has seen phenomenal growth in cryptocurrency trading volumes as well as the size of the community participating in this alternate investment class. But due to lack of clarity and in the absence of regulation, banks are still hesitant in providing services to exchanges and have been blocking transactions related to cryptocurrencies, which is impacting investors.

Also, due to growing investment in cryptocurrency, there are many questions being raised on how such transactions and trades are being reported within the country. The crypto industry is volatile and a mark to market approach is usually used for capital gains. Taxation on realization helps in defining a lock-in effect and this interests the investors more to retain their assets when the economy benefits from a difference in investment.

Therefore, all stakeholders of the ecosystem, including retail, institutional investors, cryptocurrency exchanges and financial institutions are looking forward for answers to some of these questions in the upcoming budget. While exchanges like Bitex do provide support to their customers with a detailed report on each individual transaction to facilitate the reporting requirement; cryptocurrency stakeholders across the ecosystem will look for clarity on how individuals and exchanges can report crypto trades on their filing.

Another aspect that requires government’s approval is crypto mining, since presently, exchanges have to depend on the import of cryptocurrency by remitting funds. It is quintessential that the government considers practices in the upcoming budget that protect the interest of Indian cryptocurrency exchanges and help funds remain within the country.”

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