Union Budget is an opportunity to push for crypto regulation

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Editor's note: By the end of this year, we will see the first pieces of legislation to regulate cryptocurrencies come into effect in the US and the European Union. Will the Indian government, which continues to duck the question of reining in the digital asset industry, use the upcoming Union Budget to plug the gaps in the current regulatory regime?  It was exactly a year ago that the government, under Union Budget 2022-23, introduced a 30% tax on income from cryptocurrencies and 1% tax deducted at source on crypto transactions. In the subsequent months, a number of crypto platforms moved abroad (mainly Dubai and Singapore), while many investors shifted their trading activity overseas.  But a “tax it to death” approach is not a replacement for actual regulation.  Following the crypto tax, trading volumes on Indian crypto exchanges fell 40-50% over the past year. Also, since the tax regime came into force in April (30% tax) and July (1% TDS), the government could not collect much taxable income anyway.  Moreover, in response to the new tax, Indians moved over $3.8 billion to foreign …