The Indian government plans to release a long-awaited discussion paper on cryptocurrency regulation in June 2025. This step may significantly change the country’s approach to digital assets.
Discussion on Crypto Regulation
India is set to release a discussion paper on cryptocurrency regulation that will gather public input and define future policy. This step is seen as an attempt by one of the largest cryptocurrency markets in the world to clarify its approach to regulation and the implementation of digital assets.
Industry Push for Tax Reforms
Since the introduction of a 30% capital gains tax and an additional 1% tax deducted at source in 2022, the Indian crypto market has faced a sharp decline in trading volumes. Industry reports indicate that more than 90% of crypto activity has shifted to foreign platforms, prompting urgent calls for tax reform. Experts and crypto firms argue for a reduced transaction tax of 0.1% to encourage users to return to compliant Indian exchanges.
RBI's New Stance on Crypto
The Reserve Bank of India, which has traditionally been skeptical of cryptocurrencies, seems to have softened its stance. While there is no definitive decision yet, the RBI plans to consider the opinions expressed in the upcoming discussion paper. This document is expected to serve as a basis for further dialogue between regulators, builders, and cryptocurrency users.
The upcoming discussion paper on cryptocurrency regulation in India is anticipated as a crucial step towards establishing clear rules for the crypto market. It will be interesting to see how the government responds to public opinion and industry demands, and what changes may follow in tax policy.
