According to a report, India is reassessing its stance on crypto following changing global perspectives. The review comes as digital assets are gaining increased traction worldwide.
Especially in the US, where the country is set to establish a “digital asset stockpile.” Meanwhile, Japan, Switzerland, and Russia are exploring integrating Bitcoin into their financial systems. Moreover, Vancouver has already approved Bitcoin for municipal reserves.
India’s Review of Crypto Regulation
Reuters reported that India’s Economic Affairs Secretary, Ajay Seth, emphasized that India’s stance on crypto cannot be unilateral. He highlighted that such assets “don’t believe in borders.”
The report further indicated that this renewed discussion could delay the release of India’s long-awaited discussion paper on crypto regulations.
The paper was originally scheduled for September 2024, but it was postponed. Now, the ongoing deliberations might push its release even further.
“More than one or two jurisdictions have changed their stance towards cryptocurrency in terms of the usage, their acceptance, where do they see the importance of crypto assets. In that stride, we are having a look at the discussion paper once again,” Seth said.
Despite the ongoing regulatory review, India’s 2025 Union Budget offered no relief in crypto taxes. The tax structure imposes a 30% tax on capital gains and a 1% Tax Deducted at Source (TDS) on transactions.
Furthermore, Finance Minister Nirmala Sitharaman has proposed that “virtual digital assets” be included under Section 158B.
“Crypto asset has been defined in Section 2(47A) of the Act under the existing definition of Virtual Digital Asset. The term “virtual digital asset” has been included in the definition of undisclosed income under Section 158B of the Income Tax Act, 1961, as per the Finance Bill 2025,” the document read.
For context, Section 158B of the Income Tax Act deals with the assessment of undisclosed income. The section gives the Income Tax Department the power to assess such undisclosed income by issuing a notice to the person or entity involved.
The assessment involves determining the amount of income that was not previously disclosed in tax returns and calculating the tax liability on it.
“It is proposed that prescribed reporting entity shall provide prescribed information in respect of transactions of crypto-asset for such period and in such time and manner to such income tax authority, as prescribed,” the document further noted.
Historically, India has maintained a cautious stance on cryptocurrency. For instance, Indian regulators, including the Reserve Bank of India (RBI), have been pushing for a Central Bank Digital Currency (CBDC) as an alternative to decentralized cryptocurrencies.
That’s not all. In India, major cryptocurrency exchanges have faced notable issues. In December 2024, the Indian government uncovered $97 million in unpaid Goods and Services Tax (GST) liabilities from 17 cryptocurrency exchanges. Binance alone owes $85 million in unpaid taxes.
In addition, Bybit temporarily suspended its services in India in January, citing compliance challenges.
Wirex
YouHodler
eToro
eToro
eToro
eToro
Phemex
BingX
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
