BENGALURU: With Bitcoin prices continuing to rise and US President Donald Trump’s order of creating a cryptocurrency working group, the virtual assets industry in India says the momentum is building up and that the country should remain in the forefront. They expect the upcoming Budget to introduce a clear compliance framework and simplified tax structures.
Though in 2022, the Budget provided some clarity to crypto ecosystem, it brought challenges with taxation. Edul Patel, co-founder & CEO of Mudrex said, “The 1% TDS on crypto transactions led many investors and traders to turn towards foreign exchanges, making it harder for the government to track activity. Additionally, the inability to offset losses against gains has further discouraged investor participation.”
The crypto industry is looking forward to a more balanced and progressive approach that would encourage innovation and support sustainable growth for the sector. Crypto exchanges expect a reduction in TDS to 0.01% and the allowance for offsetting losses as it could benefit investors and drive positive momentum in the industry.
Nikhil Sethi, founder & MD, Zuvomo, said Budget 2025 is a critical moment for India to reclaim its leadership in the global tech ecosystem. “India ranks No.1 in the number of crypto holders and No.3 in tech unicorns globally. Yet, we seem to have missed Web3 tsunami, which doubled its market cap in 2024 and saw DeFi TVL surge by 2000% year-on-year. Ambiguity in crypto compliance and a regressive tax regime have hindered innovation, pushing start-ups and talent overseas,” he said.
“Approval of Bitcoin and Ethereum ETFs in the US in 2024 underlines the importance of forward-looking regulations. In a country with thousands of tech startups, a thriving ecosystem and globally leading talent, the crypto industry expects balanced taxation, clear compliance frameworks, and innovation-friendly policies,” he added. Last week, Bitcoin hit a all-time high of above $1,09,000. Exchanges say it is pivotal for India to align its crypto policies with the global regulatory framework.
Exchanges expect cut in TDS to 0.01%
Crypto industry is looking forward to a balanced and progressive approach that would encourage innovation and support growth for the sector. Crypto exchanges expect a cut in TDS to 0.01% and the allowance for offsetting losses as it could benefit investors and drive positive momentum