Multiple jurisdictions have changed their stance towards digital assets in terms of usage, their acceptance and importance, economic affairs secretary Ajay Seth said
This comes as recent announcements by the Trump administration have rekindled hopes of widespread crypto adoption in the US
Indians have been investing millions in crypto despite heavy taxation and strict regulatory regime
The Centre is re-examining its position on cryptocurrencies amid a global policy shift spurred by the US.
Multiple jurisdictions have changed their stance towards digital assets in terms of usage, their acceptance and importance, economic affairs secretary Ajay Seth told Reuters.
With the global view on crypto shifting, the Centre is taking a second look at the discussion paper on cryptocurrencies which was due for release in September 2024, the secretary said.
Seth underlined that virtual assets “don’t believe in borders”, and therefore, India’s stance on crypto cannot be unilateral.
This stands in stark contrast to remarks made by former RBI governor Shaktikanta Das. In January 2024, the former central bank governor said that crypto poses significant risks to the country’s macroeconomic stability.
India’s review of its crypto stance comes at a time when recent announcements by the Trump administration have rekindled hopes of crypto’s widespread adoption in the US and approval of more financial products linked to digital assets, similar to ETFs.
Last week, US president Donald Trump passed an executive order, calling for the establishment of a working group, whose responsibilities include drafting a new regulatory framework for crypto in the US and proposing criteria for a crypto reserve.
India has taken a strict regulatory stance on crypto so far despite the growing adoption of digital assets in the country. According to a report by Chainalysis, India led the global crypto adoption in 2024 for the second year in a row.
India began levying a 1% tax deducted at the source (TDS) on crypto transactions above INR 10K and a hefty 30% capital gains tax in 2022.
In December 2023, nine cryptocurrency exchanges, including Binance, Kucoin and Bitfinex, were slapped with show-cause notices by India’s Financial Intelligence Unit (FIU) for allegedly “illegally” operating in the country through offshore entities.
WazirX is also currently under investigation by multiple government agencies after hackers stole nearly $235 Mn from one of its wallets last July. More than 4 Mn Indians impacted by the hack are yet to fully recover their losses.
India’s clamp down on the industry has forced several crypto firms to shut shop, including OKX, Pillow, Flint, and WeTrade.
