India is poised to take the lead in global crypto regulation by 2025, according to industry experts at Binance. The country’s progressive frameworks aimed at boosting trust, fostering innovation, and expanding blockchain utility are expected to set the tone for the future of cryptocurrency regulation worldwide.
Vishal Sacheendran, Head of Regional Markets at Binance, highlighted the importance of clear regulatory frameworks in driving growth and trust in the crypto sector. He expressed optimism that India will lead the way in shaping comprehensive and progressive crypto regulations by 2025, signaling a shift towards a more supportive environment for the industry.
The momentum towards stronger regulations comes on the heels of significant developments in 2024, including the approval of spot bitcoin and ether exchange-traded funds (ETFs) in the U.S. This milestone, along with increasing institutional engagement and altcoin adoption, underscores the need for robust regulatory frameworks that can ensure stability while fostering innovation.
Binance has been proactive in aligning with India’s evolving regulations, with recent efforts to strengthen its presence in the country. By registering with the Financial Intelligence Unit – India, the company has demonstrated its commitment to compliance and providing secure crypto services in line with regulatory requirements.
Looking ahead to 2025, Binance’s focus will be on building trust within the crypto ecosystem, enhancing collaborations with authorities, and leveraging blockchain technology to address real-world challenges. Sacheendran emphasized the importance of creating a decentralized, inclusive, and innovative digital ecosystem that goes beyond trading.
India’s journey towards crypto regulation has evolved over the years, from initial proposals for a complete ban in 2019 to a more nuanced approach in response to global trends and domestic demand. The country’s participation in global forums like the G20 and alignment with frameworks such as the Financial Action Task Force reflect a growing openness to regulating cryptocurrencies.
In 2024, the Securities and Exchange Board of India (SEBI) proposed a multi-regulator model for overseeing crypto assets, signaling a shift towards shared oversight among regulatory bodies. The Financial Intelligence Unit’s mandate for crypto exchanges to register and comply with anti-money laundering rules has also underscored the importance of regulatory compliance in the industry.
India currently taxes crypto profits at 30% with limited deductions and imposes a 1% tax deducted at source on transactions. These regulations, coupled with ongoing efforts to enhance regulatory clarity and promote innovation, position India as a key player in shaping the future of global crypto regulation. As the industry continues to evolve, India’s progressive approach is expected to set a precedent for other countries seeking to navigate the complexities of regulating cryptocurrencies in a rapidly changing digital landscape.