The crypto industry in India has spotted its chance to lobby for more favorable treatment from New Delhi, according to a Financial Times report on Tuesday.
Crypto exchange executives indicated that Prime Minister Narendra Modi’s government has become more receptive to digital assets and has engaged in discussions since Donald Trump’s return to the White House, as reported by the FT.
“Thanks to Trump, the positive momentum that has happened in crypto has impacted India as well,” CoinSwitch co-founder Ashish Singhal stated, highlighting the ripple effect of international events on India’s crypto landscape.
One of the industry’s primary requests is a reduction in the “very harshly” imposed taxes, Singhal emphasized. In India, crypto transactions currently face a steep 30% capital gains tax and a 1% levy on every transaction, motivated by concerns that digital assets could facilitate criminal activities.
Additionally, the Reserve Bank of India (RBI) has been a vocal critic of cryptocurrency, having previously banned banks from providing services to crypto companies in 2018. This ban was eventually lifted by the Supreme Court in 2020, yet the central bank’s stance on the issue has been cautious.
Current RBI governor Sanjay Malhotra has refrained from directly criticizing cryptocurrency, with Singhal noting that the relationship between the crypto industry and the central bank has shifted from “negative to neutral.” This change in tone may signal a potential for more constructive dialogue moving forward.
Read More: Why Can’t India Draft a Clear Cut Crypto Policy? Country’s Supreme Court Raps Government
