Looking at the current cryptocurrency market, experts perceive that regulatory measures need to be rolled out in India. Use cases such as implementing the Prevention of Money Laundering Act (PMLA) and expanding the provisions applicable to traditional financial companies to virtual digital assets have already been initiated in in other countries. “In Hong Kong trading rules and licensing guidelines for cryptocurrency exchanges were introduced and in UAE, the Securities and Commodities Authority is accepting applications from companies looking to provide cryptocurrency services in the country,” Ashish Singhal, co-founder, CEO, CoinSwitch, told FE Blockchain, adding that the European Union passed the Markets in Crypto Assets (MiCA) legislation, providing a framework for regulating cryptocurrencies which may set an example for Indians to follow.
On June 15, 2023 (15:12 PM IST)) the total cryptocurrency market volume stood at $38.83 billion, which is about a 24.40% increase (where Bitcoin’s rate was currently high by about 47.54%), as per insights from CoinMarketCap, a cryptocurrency market research platform. “The crypto market saw an increased sell-off in the last two-three days due to which Bitcoin (BTC) and Ethereum (ETH) slipped by 3.54% and 5.43%, respectively. Also, altcoins were trading with an overall market capitalisation of about $1.02 trillion (June 15, 2023, 15:12 PM IST),” Shivam Thakral, CEO, BuyUcoin, explained.
The global cryptocurrency market is projected to grow to $1,902.5 million in 2028, as per insights from Fortune Business Insights, a market research platform. The Income Tax Return (ITR) for FY (2022-23), will include a new schedule specifically for reporting gains from Crypto/NFTs called Schedule – Virtual Digital Assets (VDA), as per insights from Koinly, a crypto tax platform. Also, recently Taxnodes, a cryptocurrency tax computation and ITR filing platform, mentioned the completion of its seed funding round, securing about $1.6 million for simplifying cryptocurrency tax processes. Such initiatives are expected to make it easy for people to deal with cryptocurrency and invest more in this market.
However, it is believed that the lack of education and awareness about cryptocurrencies and their underlying technology could be considered a drawback in the cryptocurrency market. “Education is important for people to make informed decisions about investing in cryptocurrencies and to understand the risks and potential rewards. Going by the discussion and dialogue between G20 nations regarding the regulation of the cryptocurrency industry, we are hopeful for a stable, secure and transparent future for cryptocurrency investors,” Punit Agarwal, founder, KoinX, a cryptocurrency taxation platform, concluded.
