EddieJayonCrypto
27 May 25
The Indian government has recently shown increased openness to cryptocurrency, holding frequent meetings with local industry leaders, influenced partly by trade talks with the U.S. Despite this shift, regulatory clarity remains uncertain. India enforces a strict 30% capital gains tax on crypto profi...
The Indian government has demonstrated increased engagement with the cryptocurrency industry, drawing inspiration from the U.S. model. This shift includes frequent meetings with local crypto leaders, influenced in part by ongoing trade negotiations with the United States.Despite this openness, regulatory clarity remains elusive. India enforces a stringent 30% capital gains tax on profits derived from digital currency transactions, a policy that many industry lobbyists argue stifles innovation and growth within the sector.Historically, the Reserve Bank of India (RBI) imposed a banking ban on crypto dealings by financial institutions, which was overturned in March 2020, providing a temporary boost to the industry. In 2021, the government proposed a draft bill to ban private cryptocurrencies outright, but it was never enacted.The heavy taxation regime introduced in 2022 resulted in a sharp decline in crypto trading volumes after a period of rapid market expansion. The Indian crypto sector is currently lobbying for tax reductions to reverse the slowdown and foster a more favorable environment for innovation and investment.