The increasing interest in cryptocurrencies in India may influence government policy regarding digital assets. Crypto expert Sujal Jethwani shared his views on the current state of the crypto sector in the country.
General State of the Crypto Landscape in India
Sujal Jethwani, a crypto educator with a community of about 400,000 across social media, stated that the growing demand for cryptocurrency could change the political landscape of India. 'If you look at the numbers, all the stock market and forex traders are moving to crypto,' Jethwani said.
Tax Policy and its Impact
According to Jethwani, the Indian government is trying to suppress cryptocurrency through high taxes and the tax deducted at source (TDS). He noted that the 1% TDS on all crypto transactions exceeding $115 has reduced market activity. Furthermore, India's Income Tax Act imposes a flat 30% tax on profits from selling virtual digital assets.
Future Changes and Expectations
Jethwani expressed hope that the growing interest in cryptocurrencies may compel the government to adopt more favorable rules. He also noted that while progress may be slow, users will 'force' the government to take the issue of regulation seriously. 'It's going to happen. The government will have to take it seriously,' the expert added.
Given the rising interest in cryptocurrencies, Indian authorities may be compelled to reassess their regulatory approaches to this sector, thereby encouraging increased activity among traders and investors.
