India Reassessing Crypto Policies Amid Global Shifts
Recent reports indicate that India is reevaluating its stance on cryptocurrencies, signaling a potential shift in policy as international attitudes toward digital assets evolve.
Policy Review in Response to Global Developments
India’s Economic Affairs Secretary, Ajay Seth, has acknowledged the changing landscape surrounding cryptocurrencies, prompting the government to revisit its regulatory approach. This move suggests a willingness to explore more adaptive policies that could potentially drive growth in the sector.
Industry leaders, including CoinDCX co-founder Sumit Gupta, view this policy reassessment as a positive step towards progress. Gupta highlighted India’s leading position in grassroots crypto adoption and emphasized the potential economic impact of Web3 technologies.
“To truly lead this digital revolution, regulating the sector, friendlier policies, and releasing a discussion paper on priority is the need of the hour! A clear, forward-thinking approach can position India at the forefront of the Web3 innovation.”
Implications of Stricter Tax Rules
Despite the potential shift in crypto policies, India’s Budget 2025 introduces stricter tax measures on digital assets, reflecting the government’s efforts to increase compliance and oversight in the sector.
Key Updates in Tax Policy
- Cryptocurrencies are now classified as virtual digital assets and subjected to higher tax rates if not disclosed as income.
- Effective February 2025, a 70% penalty on undeclared crypto gains will be imposed, with retroactive application to the past four years.
- By April 2026, businesses involved in crypto transactions must report all dealings to tax authorities, with detailed disclosure requirements on participants, asset types, and trade values.
Industry experts caution that these rigid tax policies could drive traders towards underground markets or offshore platforms, posing challenges for regulatory oversight.
Sumit Gupta, the CEO of CoinDCX, criticized the new tax framework, advocating for a more balanced approach to encourage compliance and innovation in the blockchain economy. He emphasized the importance of India keeping pace with global developments to achieve its economic ambitions.
“India’s ambition to be a $30 trillion economy by 2047 depends on embracing AI, Web3 & blockchain. The world is moving ahead—India must act fast with policies that foster innovation, not stifle it.”