Bitcoin News Today: India Maintains 30% Crypto Tax Rate, Blocks Bitcoin ETFs, No Regulatory Framework

India’s Ministry of Finance has reaffirmed its commitment to maintaining the 30% tax rate on cryptocurrency gains and has ruled out approvals for Bitcoin exchange-traded funds (ETFs) in the near term, according to multiple official statements and regulatory updates [1][2][4]. This decision preserves a 2022 policy that imposes a 1% tax deducted at source (TDS) on transactions exceeding INR 10,000, further complicating compliance for investors and businesses [2][7]. Despite calls for revisions from industry stakeholders, the government has opted for regulatory continuity, signaling no immediate shifts in its approach to digital asset taxation [1][7].

The absence of a structured regulatory framework for cryptocurrencies has exacerbated uncertainty, prompting major exchanges and blockchain firms to relocate operations abroad. For instance, WazirX moved to Singapore in 2023 following a $230 million cyberattack, while CoinDCX recently reported a $44 million theft, underscoring systemic vulnerabilities in India’s oversight model [1]. Industry leaders, including Siddharth Sogani of Crebaco, have criticized the lack of clarity, with Sogani noting that years of unresponsive policy discussions led to his firm’s relocation [1]. The Ministry of Finance has not disclosed plans to establish a formal regulatory regime, compounding challenges for firms navigating an opaque legal landscape [3].

Enforcement efforts by the Income Tax Department have intensified in recent months, leveraging the TDS mechanism to monitor transactions and curb tax evasion. This has been accompanied by stricter reporting requirements, making it harder for investors to conceal gains from digital assets [5]. Meanwhile, the government’s refusal to collect comprehensive data on crypto activities—despite the TDS system being in place for five years—has drawn criticism for undermining policy development [3].

The status quo contrasts with global trends, where regulators in the U.S. and other regions are advancing frameworks to integrate digital assets into financial systems. BlackRock’s Investment Institute highlighted a 25% year-to-date gain for Bitcoin in 2025, attributing the rally to regulatory momentum in Western markets [10]. In contrast, India’s cautious stance appears to insulate its crypto sector from such global dynamics, leaving businesses and investors in limbo as they await policy reforms [1][3].

Source: [1] India's Crypto Tax Rules Remain Unchanged, No Bitcoin ETF Approval Expected, [https://coingape.com/indias-crypto-tax-rules-remain-unchanged-no-bitcoin-etf-approval-expected/]; [2] Ministry of Finance drops MAJOR update on crypto tax, [https://www.instagram.com/p/DMr3gM1yjy4/]; [3] India Dials Back Crypto Regulation Hopes, Industry Left in Limbo, [https://www.msn.com/en-us/money/other/india-dials-back-crypto-regulation-hopes-industry-left-in-limbo/ar-AA1JrpuM]; [4] Protechbro Media - X, [https://x.com/ProtechbroMedia/status/1950184****90064184]; [5] In India, avoiding taxes on bitcoin, cryptocurrencies, and..., [https://www.facebook.com/groups/1919437851512034/posts/23893442850351552/]; [7] Crypto India on Instagram: "IMP Dates of the week to keep..., [https://www.instagram.com/p/DMpR63huuCC/]; [10] Weekly market commentary | BlackRock Investment Institute, [https://www.blackrock.com/us/individual/insights/blackrock-investment-institute/weekly-commentary].