Crypto tax is here in India after the finance minister Nirmala Sitharaman’s announcement of 30 percent tax on transfer of digital assets in the Budget 2022. Although the finance minister did maintain that taxing an asset does not legitimise it industry watchers believe that clarity on tax policy is the first step towards regulation.

The tax brings with it concerns of participation levels, with some experts saying it will dissuade investors, while some maintain it will give confidence to serious ones. Things are looking great in the short term however, with the exchanges reporting a 20 to 50 percent surge in participation levels on the day of the announcement, giving the markets hope of better things to come.

This rise has even prompted exchanges to devise new products so could this reform be the first step in India's digital leap and what role can blockchain technology play? To discuss this, CNBC-TV18’s Manisha Gupta spoke to Darshan Bathija, Co-Founder and CEO at Vauld, and Sandeep Nailwal, Co-Founder and COO at Polygon.

For full interview, watch accompanying video.