The Blockchain and Crypto Assets Council (BACC) launched an attack on the Union government over the state's ambiguous crypto policies. BACC reacted angrily to a recent clarification stating that a loss in one crypto asset could not be offset against another.
BACC office bearers called the provision'regressive' in a statement, adding that it would discourage retail investors from participating in the country's crypto boom. It also stated that prohibiting crypto losses from being offset could have a negative impact on tax collection in the country.
Ashish Singhal, co-chair of the BACC and CEO of CoinSwitch Kuber, stated, "We fear that the lack of provision to offset losses will drive users away from KYC-compliant exchanges and platforms and into the peer-to-peer grey market, defeating the purpose of the new tax." "The Budget recognised virtual digital assets (VDAs) as an emerging asset class," Singhal continued. As a result, the natural course of action would have been to gradually bring the regulations in line with other asset classes. Instead, we have taken a step back with this clarification in Parliament. If a regressive provision like this had been applicable in equities, retail investors would have been discouraged from participating."