India’s cryptocurrency industry is ramping up pressure on the government to reduce harsh tax policies, seizing on growing optimism fueled by global political shifts—particularly the potential return of Donald Trump to the White House.
Industry executives say engagement with Indian policymakers has accelerated dramatically. Where discussions used to happen twice a year, they are now taking place monthly or even weekly. The sector is pushing for major tax reform, advocating for a 0.1% transaction levy in place of the current 30% capital gains tax and 1% tax deducted at source (TDS) on each crypto trade.
Industry leaders argue that these changes are essential to stop the outflow of crypto trading activity to overseas platforms. The current tax regime, they say, is stifling innovation and investment within India. With major exchanges like Coinbase and Binance working to reestablish their presence in the country, the sector sees a window of opportunity to expand—provided the government offers a more favorable regulatory and tax environment.
Forecasts suggest India’s crypto market could grow to $15 billion by 2035, but legal ambiguity continues to cloud progress. A widespread misconception among the public is that crypto trading is illegal, when in fact it remains unregulated but permitted. This misinformation, combined with a lack of tax clarity, hampers both adoption and institutional participation.
Adding to industry frustration, India’s February 2025 budget did not address crypto taxation, despite repeated lobbying by key stakeholders. However, insiders say New Delhi has begun redrafting its crypto policy papers, hinting at possible reforms in the near future.
The Trump factor adds another layer of intrigue. Many in the Indian crypto space believe a second Trump administration could usher in a more favorable global climate for digital assets. Trump has recently embraced pro-crypto rhetoric, and some analysts suggest his influence may encourage India to align more closely with emerging international norms on crypto regulation.
While the path ahead is uncertain, momentum within India’s crypto sector is clearly building. With regular policy discussions now underway, and global sentiment shifting, many hope that meaningful tax relief and regulatory clarity may finally be within reach—helping India unlock its full potential in the digital asset economy.
Source: Top Tech News
