The Indian government is reevaluating its approach to cryptocurrency as global perspectives on digital assets begin to soften, as reported by Reuters on Monday.
Despite the lack of regulations in the Indian crypto landscape, the government initiated a taxation framework for digital assets in 2022. This framework imposed a 1% tax-deducted-at-source (TDS) on crypto transactions and a hefty 30% capital gains tax. Since then, the crypto community has been urging the Modi administration to ease these tax burdens and provide clearer policies to foster the growth of digital assets in India, yet these pleas have fallen on deaf ears, as noted by CoinDesk.
The renewed interest from the Indian government comes at a time when Donald Trump’s pro-crypto administration has rekindled optimism for widespread adoption in the United States. The impressive uptick in financial products associated with digital tokens has put pressure on other nations, including India, to reassess their regulatory positions.
“More than one or two jurisdictions have changed their stance towards cryptocurrency in terms of its usage and acceptance, recognizing the significance of crypto assets. In this context, we are revisiting the discussion paper,” stated Ajay Seth, India’s Economic Affairs Secretary, in an interview with Reuters.
The discussion paper regarding crypto regulations, which had been shelved last year as officials prioritized other matters, may now see renewed attention as part of this reevaluation process.
