We examine a frightening scenario regarding India’s de-legalization of cryptocurrency.
It is important that you note that India does not have any legislation currently in place to regulate cryptocurrency. However, India has outlawed the practice. To examine the tax implications of India’s growing cryptocurrency trades, the government has formed a new committee.
Momentum in Tier 2 & 3 Cities
According to reports, more than 15,000,000 Indians are currently investing in this area.
According to various estimates, over 15 million Indians have made cryptocurrency investments in the last twelve months. It is growing steadily, with a large part of it coming from Tier-2 and Tier-3 cities in India. The cryptocurrencies go beyond volatile digital currencies. Cryptocurrencies are an asset that can provide much-needed diversification for any investor’s portfolio. “Taking cues form the Chinese approach to ban cryptocurrencies blanket would be a huge blow to India’s economy,” said Edul Patel (CEO & Co-founder, Mudrex).
Nischal Shetty is the founder and CEO of WazirX. He adds that “Our number users from Tier II and Tier III cities has grown by 2648%, which contributed to 55% total WazirX signups in 2021.” Given that CryptoTech is being adopted by more than 60% of Indian states, it has tremendous potential to help us achieve our $5 Trillion economy vision.
Great prospects for job creation
Recent Nasscom-WazirX reports suggested that the crypto tech sector could add an economic value of 184 billion dollars to India by 2030. This figure will rise to 241 million in the next nine years. This sector, which employs approximately 50,000 people, could grow twice as fast and create over 800k+ new jobs by 2030.
“Several Indian cryptocurrency-based startups have raised millions of dollars over the past 12 months. These companies have created thousands of new jobs. According to various listings on Naukri.com, LinkedIn and other sites, more than 20,000 people are being hired for roles in blockchain and cryptocurrency. If crypto is recognized by the government as an asset class, it can be taxed according to the applicable laws. This could provide a significant boost to India’s Treasury.
“Banning cryptocurrency trading would leave the government without the ability to tax the profits. Many Indian investors have invested in several startups that are cryptocurrency-based. India would lose a lot of FDI flows if cryptocurrencies were banned. Patel says that these inflows would have helped to reduce India’s deficit in the Balance of Payments.”
It is clear that blockchain and cryptocurrency have the potential to create the next wave of jobs for India’s highly-skilled youth. Future innovations in cryptocurrency and blockchain have the potential to be tagged Indian and provide a solid avenue of economic growth and job creation.
“Adoption and support of cryptocurrency will help inflow foreign investment from capital-rich countries looking for projects to invest in. Vikram Subburaj is the Co-Founder and CEO at Giottus Cryptocurrency Exchange. He says that cryptocurrencies are similar to the internet, which allowed millions of Indians freedom of expression and opened up new avenues for communication without disrupting the government’s control.