Catenaa, Saturday, June 31, 2025-India cryptocurrency sector is intensifying efforts to persuade the government to reduce the steep 30% capital gains tax and 1% transaction levy imposed in 2022, industry leaders said Tuesday, early last week.
The tax measures, originally aimed at curbing illicit activity, have driven over 90% of crypto trading offshore, according to a report by the Esya Centre.
The push for tax relief comes amid a shifting regulatory climate influenced by renewed US support for digital assets under President Donald Trump’s administration.
Indian crypto executives report increased dialogue with government officials, moving from biannual meetings to nearly weekly consultations.
India’s Reserve Bank once equated crypto with Ponzi schemes and sought a banking ban in 2018, which was later overturned by the Supreme Court. While skepticism remains, the RBI’s stance has softened from hostile to neutral.
The government is redrafting a key discussion paper on crypto regulations, though February’s budget offered no tax relief, disappointing industry groups such as the Bharat Web3 Association. The Supreme Court recently urged the government to enact clear crypto regulations amid growing sector demand.
International exchanges Binance and Coinbase have resumed operations in India, signaling renewed market confidence.
The country’s crypto market, currently valued near $2.5 billion, is projected to grow to $15 billion by 2035, driven by younger, tech-savvy investors.
