India’s crypto community is growing restless as the Finance Ministry confirms it has no plans to revise the 30 percent tax on crypto profits or allow Bitcoin Exchange Traded Funds (ETFs) in the near future.
This hard stance comes at a time when the global markets are rapidly embracing regulated crypto investment products, leaving India’s investors frustrated and entrepreneurs considering moving abroad.
Under the current rules, crypto profits are taxed at 30 percent, while a 1 percent TDS is imposed on transactions over 10,000 rupees. These regulations, combined with the absence of ETFs, are creating major barriers to mainstream adoption.
Industry Pushback and Mass Relocation
Despite these obstacles, India remains one of the top crypto adopting countries, as per Chainalysis. However, industry leaders warn that lack of clarity is driving companies overseas.
WazirX relocated to Singapore after a 230 million dollar hack, while CoinDCX recently suffered a 44 million dollar exploit. Siddharth Sogani, CEO of blockchain firm Crebaco, voiced his frustration:
“I have been pushing for regulations for more than a decade. Nothing has changed. I had to shift my business abroad.”
Missed Opportunities
Experts say Exchange Traded Funds would create safer and easier access for Indian investors and bring much needed institutional protections. Yet the lack of progress leaves millions trading without clear legal frameworks.
India, a nation of tech savvy youth and one of the world’s fastest growing digital economies, risks losing its edge as innovation moves offshore.
⏳ The Clock Is Ticking
As the rest of the world accelerates adoption and regulation of digital assets, India’s strict stance may cost it a key position in the future of finance. Without , the country could be left behind in the next wave of financial innovation.
