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2026-01-22 10:50:56 am | Source: Liminal Custody
Quote on Pre-Budget Quote by Manhar Garegrat, Country Head - India, Liminal Custody
Quote on Pre-Budget Quote by Manhar Garegrat, Country Head - India, Liminal Custody

Below the Quote on Pre-Budget Quote by Manhar Garegrat, Country Head - India, Liminal Custody

 

“India’s crypto conversation has largely focused on enforcement and taxation, but the next phase needs to address market structure and sustainability.

The real question for Budget 2026 is not whether virtual digital assets should exist, but how regulated activity can be kept onshore, transparent, and economically viable. Today, compliant Indian participants face friction that often pushes volumes offshore, weakening oversight rather than strengthening it.

Budget 2026 should therefore focus squarely on VDAs. One meaningful step would be to rethink transaction-level taxation. The current withholding mechanism adds operational burden without materially contributing to revenues. A more effective alternative would be a VDA transaction tax, similar to the securities transaction tax in capital markets that achieves traceability while also generating predictable revenue.

Such a structure would help bring volumes back to spot markets, reduce excessive reliance on high-risk derivatives, and introduce greater stability into a growing ecosystem that is increasingly intersecting with mainstream finance.”

 

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