Crypto Will Collapse One Day, Says Rakesh Jhunjhunwala

Just a couple of days back, in a major setback to India¡¯s crypto industry¡¯s future, the Finance Minister had made a slew of announcements against digital assets (crypto) during the Union Budget 2022 speech.

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Not only did the announcement state a hefty 30% tax on any income from the transfer of digital assets (crypto), but even a TDS on payment made in relation to the transfer of virtual digital assets will be levied at the rate of 1% of such consideration above a monetary threshold.

#CryptoTax #CryptocurrencyNews
Indian government to #Crypto #Traders pic.twitter.com/cemqzLpqqr

¡ª CRYPTO MONK (@CRYPTOMONKIN) February 1, 2022

And that's not all. The loss from such transfer of assets cannot be set off against any other income, and the gift of such assets will be taxed in the hands of the recipient. Moreover, no deduction in respect to any expenditure or allowance shall be allowed while computing such income except the cost of acquisition.

Condition of Indian investors after 30% Tax & 1% TDS #CryptoTax #Cryptoindia #IndiaWantsCrypto pic.twitter.com/jN89deu9PJ

¡ª Crypto Memes (@memeypto) February 2, 2022

Certainly, even though the Budget speech failed to mention anything about the much anticipated new Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, these announcements pertaining to crypto are no less than a signal towards the government's stance against it.

Besides these announcements triggering tons of memes and reactions on social media, even India¡¯s ace investor Rakesh Jhunjhunwala has put forth his views on crypto recently.

Also Read: RBI In Favor Of A Complete Ban On Crypto, Says It's A Serious Concern For Them

Rakesh Jhunjhunwala's Statements - From China's Footsteps To Crypto Collapse

As per his recent interview with CNBCTV18 after the Budget 2022, Jhunjhunwala stated that he believes India is following China's footsteps with respect to its provisions on digital currency.

He said, ¡°I think what government wants to do is that it wants the Reserve Bank of India (RBI) to promote digital currency and kill all other currencies, just like China is doing, which in a way is the right approach also.¡±

And that¡¯s not all.

In a recent interview with ET NOW, Jhunjhunwala further stated that he expects the crypto market to collapse one day, but that won't impact the equity market in a big way, as the investor class of equities and cryptocurrencies is completely different from each other.

Also Read: Tax On Crypto, No Income Tax Relief - How Budget 2022 Affects Your Financial Life

The Road Ahead For Crypto?

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Also Read: Digital Rupee: Why India's Blockchain-Based Rupee Is Good News For Government

Is there a future for crypto in India after Budget 2022 announcements? That's what many of us must be wondering right now.

Before Budget 2022, crypto enthusiasts had been keenly looking forward to the much anticipated new Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 to provide the much-needed clarity on the otherwise cloudy future of the crypto industry in India.

But post the Budget 2022 announcements burdening India¡¯s crypto industry in more ways than one, the government seems to have sided with the RBI and put forth its stance against crypto.

It now remains to be seen when the crypto bill would be tabled in the Parliament, and whether it will provide any relief to the crypto industry or not, besides answering the question of banning or regulating it.

Also Read: Crypto-assets Can Increase Financial Inclusion, Says Infosys' Nandan Nilekani

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