- Is India’s 30% crypto tax here to stay despite growing adoption and industry pushback?
- Why is the Indian government refusing to approve a Bitcoin ETF while global markets embrace it?
- Are tax rules and the lack of ETFs forcing Indian crypto companies to move overseas?
India’s Finance Ministry has confirmed that the existing 30% tax on crypto gains will remain in place, with no short-term plan to approve Bitcoin or crypto Exchange-Traded Funds (ETFs). This sends hopes of regulations that are friendly towards crypto into jeopardy, in spite of the country’s growing interest in digital assets.
The current tax regime imposes a hefty 30% on crypto profits and a 1% TDS on transactions over ₹10,000. While the world is moving towards sanctioned crypto investment products, India’s cautious policy still deters investors and constructors.
Despite its hardline stance, India remains one of the world’s top crypto-adopting countries. Chainalysis has ranked India in the top category when it comes to bottom-up adoption. However, the lack of regulation and refusal to approve issuing ETFs renders trading impossible and riddled with danger, especially for new investors without institutional protections.
This regulatory shortfall has already by WazirX and CoinDCX to lose massive cyberattacks and relocate operations abroad. WazirX moved to Singapore in 2023 after a $230 million hack. CoinDCX also recently experienced a \$44 million exploit.
Crebaco blockchain company CEO Siddharth Sogani was frustrated: “I’ve been struggling to get regulations for more than a decade. Nothing changed. I eventually shifted my business overseas.”
India, a country of technology-conscious youth and a growing digital economy, is in dire need of properly formulated crypto policies. ETFs would facilitate safer and more convenient trading for millions. Yet with current ambiguity, users are vulnerable and innovation is fleeing the country.
To summarize, as the rest of the world changes rapidly in their crypto landscape, India’s strict policies will cost it a coveted place in the future of finance unless it acts quickly and embraces genuine reform.
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