India's Finance Ministry has officially confirmed that the existing 30% tax on crypto gains will remain in place. This places doubt on hopes for more favorable regulation for the crypto industry in the country, despite rising interest in digital assets.
Confirmation of Tax Rules
The Finance Ministry stated that there are currently no plans to revise crypto tax rules or approve Bitcoin and crypto Exchange-Traded Funds (ETFs). The strict tax regime includes a 30% tax on crypto profits and a 1% TDS on transactions over ₹10,000.
Regulatory Issues and ETF Denial
Despite being ranked among the top countries for crypto adoption, India’s lack of clear regulations and refusal to approve ETFs create significant barriers for investors. This makes trading in digital assets risky, especially for newcomers without institutional protections.
Indian Crypto Companies Moving Abroad
Leading Indian exchanges like WazirX and CoinDCX have already suffered massive losses due to cyberattacks and have relocated their operations overseas. For example, WazirX moved to Singapore in 2023 after a $230 million hack. Crebaco CEO Siddharth Sogani expressed frustration, stating: *“I’ve been struggling to get regulations for more than a decade. Nothing has changed. I eventually shifted my business overseas.”*
As the rest of the world quickly adapts to new developments in the crypto industry, India's strict regulatory measures may cost it competitive advantages in finance unless serious reforms are implemented.
