Market News

Crypto Industry in India Seeks Tax Reforms Amid Government Shift

The Indian cryptocurrency sector is actively lobbying for tax cuts and clearer regulations as it perceives a shift in government attitudes toward digital assets.

Industry leaders have noted that Prime Minister Narendra Modi's administration is becoming more open to discussions about cryptocurrency following Donald Trump's return to the U.S. presidency.

Currently, Indian crypto transactions are burdened with a steep 30% capital gains tax and a 1% transaction tax, prompting over 90% of trading to move offshore.

Ashish Singhal, co-founder of CoinSwitch, advocates for a reduced transaction tax of 0.1% to both encourage trading and enable easier tracking of transactions.

The Supreme Court of India has highlighted the urgency of developing comprehensive regulatory measures to combat the rising instances of fraud related to cryptocurrencies.

While the Court has ruled against banning cryptocurrencies, it has stressed the need for regulations to prevent misuse in the burgeoning crypto space.

As the dialogue between the industry and the government continues, major players like Binance and Coinbase are eyeing re-entry into the Indian market.

Experts believe that with effective regulatory policies, India's crypto industry could burgeon, with market valuations possibly exceeding $15 billion by 2035.

The upcoming Supreme Court hearings will be pivotal in shaping the future regulatory framework for cryptocurrency operations in India.

This evolving regulatory landscape could significantly impact the growth and stability of the Indian crypto market in the years to come.