The Indian Ministry of Finance has introduced the 2025 budget, upholding a strict 30% tax on cryptocurrency. This decision impacts all digital assets, including NFTs.
Strict Tax Policy of India
Under the new tax regime, all transactions involving cryptocurrencies, including Bitcoin and Ethereum, are subject to a 30% tax. This step is part of a broader federal strategy to regulate digital assets.
Impact on the Crypto Market
Market experts predict that this measure will decrease trading volumes in the domestic market and could encourage traders to utilize foreign exchanges to evade strict regulations. Additionally, such policies may negatively impact institutional investments and cryptocurrency startups.
Statements by Finance Minister Nirmala Sitharaman
Nirmala Sitharaman, India's Finance Minister, stated: "Budget 2025 tightens crypto tax norms, classifies VDAs as undisclosed income, mandates transaction reporting, retains 30% tax, and strengthens regulatory oversight."
By maintaining a strict tax policy on cryptocurrencies, India demonstrates its resolve in regulating this sector, which may have a long-term impact on the development of the blockchain industry in the country.
