india’s Crypto Market Sees New Hope Amid Policy Shifts
India is showing signs of a crypto policy recalibration, attracting the attention of crypto service providers.This shift comes as countries worldwide, including the U.S. under Donald Trump’s pro-crypto stance,are becoming more crypto-friendly.
Initially, india planned to release a crypto regulation consultation paper after its G20 presidency in 2023. However, the government has not yet acted on this. Ajay Seth, Secretary of India’s Department of Economic Affairs, noted the need to recalibrate due to global changes.
Currently, India taxes crypto income at 30% and imposes a 1% tax deducted at source. These high taxes have deterred many traders, leading to low trading volumes. Consequently,major crypto exchanges like WazirX have partially moved operations to Dubai.
Despite these challenges, there’s optimism. crypto firms are eyeing a return to India. Coinbase, for instance, registered with India’s Financial Intelligence Unit to launch its retail trading platform. Other platforms like Binance, Bybit, and KuCoin have also registered.
India’s policy shift mirrors global trends.Countries like Hong kong, Australia, and the UAE are creating favorable environments for crypto. hong Kong introduced tokenization measures and approved digital currency ETFs. Australia proposed a four-pronged approach for digital asset regulation. Dubai and Abu Dhabi have also introduced regulatory frameworks to attract crypto firms.
