- India‘s government is reviewing its cryptocurrency stance amid shifting global perspectives and regulatory changes.
- Current Indian crypto regulations include a 30% capital gains tax and 1% tax-deducted-at-source on transactions.
- The review coincides with growing crypto acceptance in major markets, particularly the United States.
- A previously shelved discussion paper on cryptocurrency regulation is being reconsidered.
- The Indian crypto sector has been advocating for tax relief and clearer regulatory frameworks.
India’s government is reassessing its cryptocurrency position as global attitudes toward digital assets evolve, with Economic Affairs Secretary Ajay Seth confirming a fresh review of the nation’s crypto policies, according to a Reuters report.
The policy reconsideration marks a potential shift from India’s traditionally cautious approach to cryptocurrencies. Since 2022, the country has maintained strict tax regulations on digital assets, including a substantial 30% capital gains tax and a 1% tax-deducted-at-source (TDS) on all crypto transactions, measures that effectively discouraged widespread adoption.
“More than one or two jurisdictions have changed their stance towards cryptocurrency in terms of the usage, their acceptance, where do they see the importance of crypto assets. In that stride, we are having a look at the discussion paper once again,” Seth explained in his interview with Reuters.
The timing of India’s review aligns with significant developments in the global cryptocurrency landscape, particularly in the United States, where the approval of spot Bitcoin ETFs and the possibility of a crypto-friendly presidential administration have renewed market optimism.
The Indian cryptocurrency industry has consistently sought policy reforms, pressing the Narendra Modi-led government for tax relief and regulatory clarity. The government’s previous discussion paper on cryptocurrency regulation was temporarily shelved last year due to competing priorities.
This regulatory reassessment could signal a more accommodative stance toward digital assets, potentially influenced by the growing institutional acceptance of cryptocurrencies in major financial markets. The outcome of this review could significantly impact India’s position in the global digital asset ecosystem.
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