Decoding the Crypto Tax – What Does it Mean for Investors?

Do the new announcements mean that the government is warming up to cryptocurrencies?

With the new crypto tax regime, the recent budget does offer some clarity on what government intends to do with cryptocurrencies.

(Photo: The Quint)

While experts are still weighing in on the hits and misses of Budget 2022 that was presented on 1 February, for a lot of India's millennials, it's the government's plans for cryptocurrencies that stand out.

India's crypto market, as we know, has been swarming with a lot of young investors, and it appears growing. But a few months ago, news of the government planning to prohibit all private cryptocurrencies in a new bill had left many worried about their investments in digital currencies.

However, with the new crypto tax regime, the recent budget does offer some clarity on what government intends to do with cryptocurrencies.

Taxing digital currencies doesn't necessarily mean that the government has legalised crypto. What does this indicate then? Does it mean that the government is warming up to cryptocurrencies? Does it mean that the ban is off the table? And the biggest question of it all – what do these new announcements mean for investors?

Explaining the fine print of it all, we have in this episode CoinCrunch CEO Naimish Sanghvi. We'll also hear snippets of lawyers Badri Narayanan and Vivek Gupta's conversation with BloombergQuint, wherein they talk about the grey areas of these announcements.