India’s crypto industry pushes for major tax cuts to revive the sector

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Crypto Chaos: India’s Tax Tango with a Dash of Trump! 💸🤪

  • India’s crypto sector is aggressively lobbying for a friendlier tax regime
  • Most global players are back to get a slice of the expected $15 billion crypto market boom

In a land where the sacred cows roam free and the rupee dances to the tune of inflation, the crypto industry has donned its finest attire, ready to charm the taxman. Yes, dear reader, the local crypto wizards are waving their wands, demanding a reversal of the draconian tax regime that has turned their dreams into nightmares. According to the illustrious Financial Times (FT), these digital alchemists are seeking tax cuts on the 30% gains and a mere 1% tax deducted at source (TDS) for every transaction. Because who doesn’t love a good tax break? 🤑

One of the industry’s leading sorcerers, Ashish Singhal, co-founder of the crypto exchange CoinSwitch, has been whispering sweet nothings to policymakers more frequently than a lovesick poet. He claims that the winds of change are blowing, thanks to none other than President Donald Trump, whose pro-crypto shift has sprinkled a bit of fairy dust on the ongoing engagement.

“Thanks to Trump, the positive momentum that has happened in crypto has impacted India as well.”

India pushes for 0.1% TDS

Now, let’s talk about the infamous 1% TDS, introduced to enhance the traceability of transactions. Singhal, with the wisdom of a seasoned sage, argues that a 0.1% TDS could achieve the same noble objective without sending traders and investors fleeing to the offshore islands. Because who needs a thriving economy when you can have a tax that drives everyone away? 🙄

“A 0.1 per cent transaction tax would achieve the same traceability objectives without discouraging trading. Now regulators are more closely talking to us, understanding what the space is.”

Ah, the restrictive tax regime of 2022! A masterpiece that triggered a mass exodus, including global giants like Coinbase, Binance, and Bybit. Overall crypto trading volumes plummeted by nearly 90% as the regulators tightened their grip, citing anti-money laundering issues. The Financial Intelligence Unit (FIU) has been busy slapping penalties on exchanges like a disgruntled teacher. But fear not! Binance, KuCoin, and Coinbase have secured licenses to relaunch operations in 2025 after settling their fines. A true tale of redemption! 🎉

Meanwhile, the ongoing crypto shift could help capitalize on India’s massive crypto market, which is expected to grow to a staggering $15 billion by 2035, according to the wise sages at Grant Thornton. That’s a 7x growth from a mere $2.5 billion in 2024. Who knew that digital coins could be so lucrative?

Despite these promising developments, the Reserve Bank of India remains the stern parent, wagging its finger at the sector and warning of the potential negative impact of crypto on financial stability. Because, of course, stability is overrated when you can have a wild ride in the world of digital currencies! 🎢

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2025-05-28 08:12