💡 Will Nirmala Once Again Overlook Crypto in the 2025 Union Budget?

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In the tumultuous year of 2024, the Indian crypto community experienced a dizzying mix of soaring adoption and a devastating WazirX hack, resulting in a 2000 crore rupee loss.

Despite cryptocurrencies remaining unregulated in India, a steep 30% tax on capital gains and an additional 1% TDS have been imposed. The Indian crypto community, brimming with hope, has eagerly awaited a favorable word from Union Finance Minister Nirmala Sitharaman—only to be met with disappointment, as crypto has yet to make it onto the government’s priority list.

As Sitharaman prepares to present the Union Budget on 1st February 2025, the Indian Crypto community remains cautiously optimistic. Will this budget finally prioritize the Crypto Industry, lower taxes, and introduce Crypto regulations? Only time will tell.

Ahead of the Union Budget 2025-26, The Crypto Times reached out to industry leaders, who unanimously agreed on the need for a robust framework for crypto.

“Robust Framework Needed for Crypto” 💡

Himanshu Maradiya, Chairman & Founder of CIFDAQ, shared his expectations for the upcoming Union Budget:

“We propose reducing the TDS rate on crypto transactions from 1% to 0.01% to enhance liquidity and establishing a robust licensing framework for crypto exchanges. Additionally, promoting blockchain innovation through incentives could position India as a leader in Web3 technologies,” said Maradiya.

Avinash Shekhar, co-founder and CEO of Pi42, demanded lower taxes on crypto in the coming budget:

“I believe the Union Budget 2025 should target the reduction of tax on virtual digital assets below 30% and cut the TDS on all transactions from 1% to 0.01%,” says Shekhar.

Shahzad Nathani, Head of Operations & Partnerships at Shardeum, expects the Indian government to introduce tax concessions for Web3 startups:

“We hope the Government will introduce tax breaks for Web3 startups, fostering innovation and growth in progressive technologies,” said Nathani.

“Fintech and AI Boost Expected” 💻

Industry leaders from the fintech sector also shared their expectations for the upcoming union budget:

“We expect the government to address the evolving regulatory landscape for fintech, especially the DPDP Act, fostering innovation while ensuring consumer protection and financial stability,” said Rohith Reji, Co-founder and CEO at Neokred.

“This investment should focus on providing cutting-edge AI infrastructure, including high-speed internet access, advanced digital tools, and dedicated AI labs in schools and colleges,” said Mridu Andotra, Founder & CEO, GeniusMentor.

Conclusion 🌟

As the world embraces Web3 developments, the Indian crypto community eagerly awaits greater crypto adoption in 2025. Regulatory approval remains a hot topic for investors, crypto enthusiasts, and startups alike, who all anticipate extended regulatory clarity.

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2025-01-28 16:23