Pre-Budget quote of Mr. Waqas Nakwa, Chief Executive Officer, Aqar Chain (aqarchain.io)
For Blockchain companies and especially digital asset or crypto startups there is an immediate need of clarity regarding Taxation on crypto gains, and identification of regulatory bodies with sandbox facilities, so startups can plan legal routes and have a clear vision of where to test the new technology and how to go Public with it.
A regulatory framework, especially for securitized assets, needs to be in place to help the economic growth with fractionalizations of assets for the retail sector. There is a real use case in fractionalizing assets and regulating these digital assets as this will bring more liquidity into that sector and more tax revenue if there is a proper taxation policy.
Exchanges can be regulated under this framework and secondary trade of securitized assets will also bring more foreign investment and allow the retail sector to amplify on this investment.
Security Token offering can be regulated by SEBI under the Securities Contracts Act 1956, this will allow multiple sectors like finance, real estate, commodities to offer asset backed digital token for institutional investors and fractionalized for retail sector.
With Crypto trading growing rapidly in India it is only evident to bring in a framework of regulations so that there is a clear vision and this industry can be the contributor to the economic growth in India.
The budget in India needs to guide RBI in adopting CBDC as already has progressed and advanced in digital payments with UPI and QR coded payments. A CBDC will ensure a useful backbone if rolled out in a phased manner thus having a restricted impact on banking system and monetary policy.
