Growing Crypto Demand in India May Influence Policy Changes
The rising interest in digital assets in India could prompt a reevaluation of the nation’s strict crypto policies, says Sujal Jethwani, a leading crypto educator. Despite the imposition of heavy taxes and a 1% TDS on transactions, India’s crypto community is witnessing rapid growth. This shift is evident as traditional stock and forex traders increasingly turn to cryptocurrencies, marking a notable transformation in the financial sector.
Current Crypto Regulations in India
India’s stance on cryptocurrencies is characterized by high taxation and regulatory ambiguity. Key aspects include:
- A flat 30% tax on profits from the sale of virtual digital assets (VDAs).
- A 1% TDS levied on crypto transactions over $115.
Emerging Political Interest in Crypto
Signs of change are emerging as political figures show increased awareness and propose initiatives like a Bitcoin reserve. Pradeep Bhandari, a spokesperson for India’s ruling party, advocates for clear regulations and the development of a sovereign Bitcoin strategy.
Prospects for Crypto in India
Although regulatory progress may be gradual, the growing user base is expected to drive more favorable policies. ‘The Indian government will have to address this issue sooner or later,’ Jethwani stated in an interview with Cointelegraph.
