The Indian government is reconsidering its stance on cryptocurrencies as the global perspective on digital assets begins to shift, according to a report by Reuters. Despite the lack of regulations surrounding crypto in India, the country implemented a 1% tax-deducted-at-source (TDS) on crypto transactions in 2022, along with a 30% capital gains tax. Since then, the crypto industry has been advocating for the government, led by Prime Minister Narendra Modi, to ease taxation and provide policy clarity to foster the growth of digital assets within the nation.
The Indian government’s review comes at a time when the United States, under a more crypto-friendly administration led by Donald Trump, has sparked optimism for widespread adoption of cryptocurrencies and the approval of additional financial products linked to digital tokens. India’s Economic Affairs Secretary Ajay Seth stated in an interview with Reuters, “More than one or two jurisdictions have changed their stance towards cryptocurrency in terms of the usage, their acceptance, where do they see the importance of crypto assets. In that stride, we are having a look at the discussion paper once again.”
The discussion paper on crypto had been put on hold last year as officials focused on other priorities, as reported by CoinDesk. As the global landscape for digital assets continues to evolve, India is now revisiting its approach to cryptocurrencies in order to stay abreast of international developments and potentially create a more conducive environment for the growth of the crypto sector within the country.
This shift in perspective by the Indian government reflects a broader trend of increasing acceptance and integration of cryptocurrencies into mainstream financial systems around the world. By reassessing its position on digital assets, India may be poised to capitalize on the potential benefits that cryptocurrencies can offer in terms of financial innovation, economic growth, and technological advancement.