India’s Crypto Industry Pushes Back — and the Government May Be Listening
After years of heavy-handed taxation, India’s crypto community is finally seeing signs of hope. According to new reports from the Financial Times, crypto industry leaders are now meeting policymakers regularly — a dramatic shift from the previous biannual discussions. The top issue on the table? Cutting the 30% capital gains tax and the 1% TDS (tax deducted at source) on crypto transactions.
Ashish Singhal of CoinSwitch says these aggressive taxes have crippled domestic trading, pushing Indian users toward offshore platforms. He suggests that even a 0.1% transaction tax would still let the government track activity without driving users away. A study by the Esya Centre found that over 90% of Indian crypto volumes have already gone offshore.
Trump’s Pro-Crypto Moves Are Influencing India
An unexpected catalyst for this shift? Donald Trump’s return to the White House and his vocal support for digital assets. Industry insiders believe that Trump's pro-crypto stance is nudging New Delhi toward a more open and competitive approach to regulation. India’s policymakers are seeing that blanket bans don’t work—and that ignoring digital assets could lead to a brain drain and missed economic opportunity. The idea now is to build a better onshore framework that allows innovation to flourish while capturing tax revenue.
Coinbase and Binance Eye India Again
Major international exchanges are watching closely. Binance and Coinbase, which had exited the Indian market due to regulatory uncertainty, are now re-engaging. Coinbase, in particular, has secured regulatory approval and believes a more crypto-friendly global environment under Trump is giving India the push it needed. Tom Duff Gordon of Coinbase stated that “India knows it can’t ban crypto anymore.” Instead, smarter regulation could bring activity back home and expand the tax base.
RBI’s Anti-Crypto Stance is Cooling
The Reserve Bank of India (RBI), once a staunch opponent of cryptocurrencies—going as far as labeling them a “Ponzi scheme”—is now showing a softer tone. RBI officials are reportedly awaiting an updated crypto policy paper from the government, suggesting the door is open for a more nuanced discussion. While full-scale regulation might still take a few years, the narrative is shifting. Younger Indians continue to drive crypto adoption, and with countries like the U.S. moving fast, India risks being left behind if it doesn’t act soon.
What's Next for India’s Crypto Tax Reform?
If India lowers its crypto taxes as proposed, it could re-enter the global crypto spotlight. Exchanges like CoinSwitch are hoping that with reduced tax burdens, India could become one of the largest crypto markets again. Investors, analysts, and global firms are watching closely. The 30% capital gains tax and 1% TDS were once seen as dealbreakers. Now, a growing consensus is forming: crypto isn’t going anywhere, and India needs to adapt or fall behind.
