Key Takeaways
- India is considering a major overhaul of its crippling 30% crypto tax and 1% TDS policy.
- Government officials are reportedly in more frequent dialogue with crypto industry leaders.
- Since the tax was introduced in 2022, trading volumes in India have plunged by 90%.
India may finally be ready to reverse course on its hardline crypto tax policy, which has severely stifled the country’s once-thriving digital asset industry.
Reports suggest that policymakers are warming up to the idea of easing the current 30% tax on crypto gains and 1% tax deducted at source (TDS) on every trade—a combination introduced in 2022 that triggered an exodus of traders and capital to friendlier jurisdictions like Dubai and Singapore.
Trump’s Crypto-Friendly Stance Rippled All the Way to India
The shift comes amid increasing engagement between Indian regulators and crypto companies, a welcome change after years of indifference.
Some insiders even credit the change in tone to global political shifts, including U.S. President Donald Trump’s pro-crypto stance, which is reportedly influencing sentiment in India.
According to a report by the Financial Times, India’s crypto industry has gained momentum in policy circles, partly due to Trump’s vocal support of crypto.
That support has helped legitimize the sector globally and prompted Indian regulators to revisit their own approach.
“Regulators are more closely talking to us and understanding what the space is,” said Coinswitch founder Ashish Singhal.
Industry players are now lobbying for a 0.1% TDS, arguing it would still enable effective trade tracking without strangling the market.
Why India’s $15B Crypto Market Can’t Afford Another Missed Opportunity
India’s digital asset space is projected to hit $15 billion in value by 2025—up from just $2.2 billion last year.
However, despite this explosive growth, the government has lagged in creating meaningful regulations or protections for crypto investors.
The 2022 WazirX hack, which cost users over $230 million, exposed major gaps in consumer safeguards and accountability.
Victims scrambled to engage authorities while regulators remained silent.
Since 2017, officials have promised a regulatory framework multiple times, but haven’t delivered a single draft.
Now, with global crypto sentiment improving and India’s own fintech ambitions at stake, the government appears to be paying closer attention.
Foreign exchanges like Binance and Coinbase—once forced to retreat from India—have recently gained approval to re-enter.
And where once high-level discussions with crypto firms happened only twice a year, they’re now taking place every two weeks, signaling a potentially dramatic policy shift ahead.
Prashant Jha is a seasoned crypto journalist based in Delhi, India, with a Bachelor’s Degree in Computer Science Engineering. Passionate about the evolving world of blockchain and cryptocurrencies, he has been a dedicated voice in the industry since 2018. Prashant’s expertise lies in regulatory reporting, where he unravels complex legal and financial developments with clarity and precision. Before joining CCN in 2024, he honed his craft at Cointelegraph, establishing himself as a trusted name in crypto journalism.
His coverage spans major industry events, including the high-profile collapses of FTX, Three Arrows Capital (3AC), and LUNA, offering readers insightful analyses of their regulatory and market implications. Prashant’s technical background enables him to bridge the gap between intricate blockchain technology and its real-world applications, making his work accessible to novices and experts.
Beyond his professional pursuits, Prashant is an avid music enthusiast, often exploring diverse genres to unwind. A sports lover, he has a particular passion for cricket and frequently engages in discussions about the game. His multifaceted interests and sharp journalistic instincts make him a valuable contributor to CCN, where he continues shaping the crypto landscape's narrative.
