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As the Union Budget 2024 stands at the threshold, cryptocurrency and the fintech sectors are awaiting new policies and regulations that may influence their growth and development. One of the major areas of development has been the evolving regulatory landscape for cryptocurrencies in India, moving from strict restrictions in the past to a more structured oversight in recent times.
The article considers what the crypto and the fintech fraternity can expect or hope for in the upcoming budget. Issues and opportunities for growth were the major areas that the new budget targeted to address under Modi's administration.
The highs and lows range from an absolute ban to severe restrictions and a hefty 30% tax on cryptocurrency transactions. It is only recently that SEBI, or the Securities and Exchange Board of India, warmed up to the idea of regulating cryptocurrency trades, offering a turn in a way toward better regulatory clarity and development. This kind of regulatory evolution is important to bring into existence a stable and secure environment for crypto investors and businesses alike.
One of the critical issues in the industry that most people hope the new government can do is revisiting the 1% Tax Deducted at Source on every crypto transaction. This tax has been deterring investors because it hits liquidity and trading volumes. Further, losses cannot be set off against gains—again, a feature that discourages investment in this sector. Resolving these issues might foster a better environment, stimulating innovation and growth in the crypto ecosystem.
On the other side, key expectations from the Fintech sector are policies that can further accelerate digital transformation and financial inclusion. The industry is eyeing clearer regulations, tax exemptions, and possible incentives for fintech firms, particularly those working in underserved areas. The sector is also looking for an enabling framework through better public-private partnerships and succor to advanced technology such as Artificial Intelligence and blockchain, which may potentially drive the next wave of the digital finance revolution.
A big fintech and crypto player, Mudrex validated the same. From a stringent regime to a more open and structured view was captured herein. As the company quotes, there is an urgent need to consider the 1% TDS and the non-allowance for offsetting losses. Both are major pain points for investors. By trying to solve these problems, the government would have an even more conducive environment for innovation and growth in balance with the vision that Mudrex has regarding a crypto ecosystem that thrives.
Quote: We have come a long way from a 10-year jail sentence to 30% tax on crypto transactions. Recently, we have seen SEBI being open to oversight crypto trades. All of these points towards a more regulatory clarity and developments in the coming years. We anticipate that the newly formed government will address the critical challenges faced by crypto investors in India. Specifically, the 1% TDS on every transaction and the current inability to offset losses against gains are significant deterrents for investors. Addressing these issues could foster a more favorable environment, encouraging innovation and growth within the sector.
Mudrex is a US-headquartered and Bengaluru-based fintech start-up launched in early 2018. It is a dynamic platform that has revolutionized the face of cryptocurrency investing with its product gamut, simplifying the journey of retail investors. It was co-founded by Edul Patel (CEO), Rohit Goyal (Vice President-Defi), Prince Arora (Vice President-Engineering) and Alankar Saxena (CTO), who graduated from IIT Bombay. The company advocates the idea of investing across themes and sectors, giving rise to its flagship product called 'Mudrex Coin Sets'. Through Coin Sets, investors can hold different tokens around the theme across the crypto ecosystem.
It is an entirely automated platform that offers hassle-free onboarding of users. Investors can start their crypto journey with as low as $5 (INR 500). The platform also allows them to invest in Coin Sets regularly through its SIP feature. It is a multi-dimensional company that caters to the varied needs of all its users. Another major offering, 'Crypto-as-a-service', is one-of-a-kind API-based enterprise tech. The service enables traditional and crypto-specific brokers, portfolio management services, fintech, etc., to provide reliable and secure crypto investment products to their user base.
The company aims to provide individuals access to low-risk and high-yield investment funds reflected through the 2.5 Lakh global users that it has gained since its launch, making it the world's Largest Crypto Index Investing Platform. Of these users, 4% hail from India, whereas the rest are spread across the US, Europe, and Southeast Asian markets. Mudrex has clocked 2400% user growth at the current growth rate in a brief period.
For more information, visit their website
