The crypto community in India is facing a heavy tax burden that’s hampering digital asset trading. This tax has been criticized for hindering the industry’s growth, leading to calls for its reduction.
India introduced a 1% TDS (tax deducted at source) regulation on crypto transactions 16 months ago to track transactions, but it has resulted in plummeting trading volumes.
This tax has led to traders shifting to overseas platforms, making it challenging for local authorities to monitor. India has called for a coordinated global approach to digital asset regulations, with support from multilateral institutions. The CEO of CoinDCX, Summit Gupta, hopes the government will reduce the tax to address these challenges.
Gupta anticipates a change in regulatory clarity by the end of 2025, following India’s general elections in 2024. However, there have been no official comments from the Finance Ministry spokesperson in India on this matter.
Despite this tax burden, India’s crypto adoption continues through offshore trading and blockchain-based services.
Chainalysis data shows India has received digital assets worth $250 billion since June, second only to the United States, which received $1 trillion. Amid these challenges, India’s crypto industry is still showing signs of interest and adoption.
Image Credit: Shutterstock
Keep in mind that we may receive commissions when you click our links and make purchases. However, this does not impact our reviews and comparisons. We try our best to keep things fair and balanced, in order to help you make the best choice for you.
