Web3 Sector Proposes Govt For Regulatory Clarity On Crypto Trading

The blockchain industry is gearing up for its crypto initiatives in India. It is seeking regulatory clarity on cryptocurrency trading in the country and has proposed the government for legislation draft, monitoring digital assets as global financial hubs such as the US, UK and Hong Kong, according to a recent media report.

In the US, UK and Hong Kong, crypto assets are legitimate trading instruments.

The Bharat Web3 Association (BWA) said that over 80 per cent of G20 members and financial hubs offer regulatory clarification on crypto assets, which emphasises the urgent need to develop a standard framework on digital assets.

The association suggested the policy should be transparent to mitigate the digital assets risk, fostering innovation.

The blockchain industry wants the Centre to form a panel to discuss model legislation in consultation with the industry. It has also requested to release a discussion paper on the subject within the first 100 days of forming the new government after concluding the Lok Sabha polls next month.

It highlighted that the government should reconsider the crypto taxation as the levy has not been able to achieve its intended purpose of monitoring suspicious transactions.

Additionally, BWA urged to reduce the TDS to 0.01 per cent and rationalise the other norms. 

In India, cryptocurrency trades attract a levy of 1 per cent tax deducted at source (TDS) and 30 per cent capital gains tax without any provision of offsetting the losses. 

It added that the web3 ecosystem is not just limited to crypto or Bitcoin.

The Web3 industry body, includes CoinDCX, WazirX and gaming platforms such as Hike and other players like Liminal and Tax Nodes.