India’s crypto scene? It’s been through the wringer. Since 2022, the government slapped a harsh 30% tax on crypto gains and a brutal 1% tax deducted at source on every single transaction.
That’s like charging you a toll every time you blink. No wonder traders and investors bolted, Binance, Coinbase, Bybit, all took a hike.
Trading volumes? They tanked nearly 90%. How to kill an emerging economy, perhaps.
They want the boom back
But now, the crypto bosses in India are pushing back hard. They want a major tax overhaul to revive the sector.
The Financial Times reports that the industry’s lobbying for a serious cut, especially on that 1% TDS.
Ashish Singhal, co-founder of CoinSwitch, says the talks with policymakers are heating up more than ever.
And guess what? He credits none other than Donald Trump’s pro-crypto stance for sparking some positive momentum, even across the globe.
“Thanks to Trump, the positive momentum that has happened in crypto has impacted India as well.”
Some or none?
Singhal argues that the government can still get what it wants, namely the traceability of transactions, with a much smaller 0.1% TDS.
One-tenth of the current tax can get the job done. It’s like saying, hey, we get it, you want to keep an eye on things, but don’t kill the market.
Because right now? The 1% tax is driving investors offshore faster than you can say blockchain. So the government get the zero percent of that 1%.
The Financial Intelligence Unit didn’t make things easier either. They slapped penalties on most exchanges, tightening the noose with anti-money laundering crackdowns.
But there’s a silver lining, Binance, KuCoin, and Coinbase have managed to settle their fines and are gearing up to relaunch in India in 2025. That’s a glimmer of hope.
Growth
India’s crypto market is massive and hungry for growth. According to Grant Thornton, it’s set to explode from $2.5 billion in 2024 to $15 billion by 2035. That’s a sevenfold jump.
Imagine the jobs, the innovation, the money flowing through the economy.
But the Reserve Bank of India remains a tough critic, warning that crypto could threaten financial stability.
It’s like having a strict capo watching your every move. Maybe not the best recipe for the bright future.
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