India's cryptocurrency policy has faced many changes, from bans and high taxes to potential strategic revisions influenced by international events.
General Situation in India
Since 2013, the Reserve Bank of India has warned about the risks of digital assets. In 2018, banks were banned from working with crypto companies, but in 2020, the Supreme Court lifted this ban. Nonetheless, the government continues imposing strict measures, including a 30% tax on profits and a new 70% tax on undisclosed crypto gains.
International Influence and Donald Trump
International pressure may prompt India to revisit its cryptocurrency legislation. Donald Trump's executive order on exploring digital assets could force India to accelerate its crypto policy development to remain competitive globally.
Future of Cryptocurrencies in India
Currently, the government focuses on its own central bank digital currency (CBDC), launching a digital rupee pilot. It aims for unified crypto regulations, but strict rules and high taxes hinder industry growth.
The future of cryptocurrencies in India remains uncertain, yet international pressure might speed up policy changes. While India explores its own digital initiatives, a key question is the potential harmonization of national regulations with global trends.
