Indian authorities may reconsider cryptocurrency stance
Indian government rethinks crypto policy amid global digital asset thaw.
The Indian government is rethinking its stance on cryptocurrency as global perspectives on digital assets begin to thaw.
The review comes as officials revisit a discussion paper on crypto policy that was previously put on hold.
Evolving Regulatory Landscape
In 2022, India introduced a framework that, while leaving crypto largely unregulated, imposed a 1% tax-deducted-at-source (TDS) on transactions and a 30% capital gains tax on digital assets. These measures have been a point of contention within the crypto industry, with many stakeholders urging the Narendra Modi-led government to ease taxation and bring greater policy clarity to foster growth in the sector. Now, influenced by the progressive crypto-friendly policies emerging in other jurisdictions—most notably under Donald Trump’s administration in the United States—Indian officials are once again examining the existing guidelines.
Economic Affairs Secretary Ajay Seth told Reuters, “More than one or two jurisdictions have changed their stance towards cryptocurrency in terms of usage and acceptance. In that stride, we are having a look at the discussion paper once again.” This renewed interest in revisiting the policy framework signals a potential shift in the country’s approach, as global trends indicate that digital assets are increasingly viewed as integral to modern finance.
Implications for India’s Digital Future
The re-evaluation of crypto policy is seen as a response to growing international acceptance and the subsequent approval of various crypto-linked financial products. Industry experts believe that easing tax burdens and clarifying regulatory parameters could stimulate broader adoption among both retail and institutional investors in India. A more favorable environment might not only drive domestic growth but also position India as a competitive player in the global digital economy.
As India continues to balance traditional regulatory practices with innovative financial trends, the outcome of this review could pave the way for new legislation that better accommodates the rapidly evolving crypto market. Market watchers are now keenly observing developments, with expectations that any significant policy adjustments will have far-reaching implications for digital asset adoption in the country.
Recently we wrote, that the Securities and Exchange Commission of Thailand is set to launch a distributed ledger technology (DLT)–based trading platform for securities firms.
