COINS Act Proposes 30% Crypto Gains Tax Reform in India

The COINS Act, drafted by Hashed Emergent, proposes a regulatory framework aimed at optimizing the crypto market in India. This proposal seeks to transform India's regulatory landscape for crypto assets, potentially increasing market stability and attracting international crypto companies. The COINS Act was released by Hashed Emergent and Black Dot, targeting India's complex crypto regulations. The blueprint incorporates elements from EU MiCA and Singapore's sandbox model. The proposed model introduces the Crypto Assets Regulatory Authority (CARA), which aims to provide a cohesive regulatory framework. This includes specific provisions for self-custody, protocol access, and financial privacy.

The COINS Act could significantly optimize India's position in the global crypto market. No immediate government adoption has occurred, but it provides guidance on future regulatory considerations. The proposal addresses industry concerns about India's current 30% crypto gains tax and regulatory inconsistencies, potentially leading to policy shifts. The initiative remains solely industry-driven at this point. Unlike past governmental drafts, the COINS Act is an industry-led initiative aimed at influencing policy. Previous regulations failed to include such in-depth industry collaboration. If adopted, the Act could align India's crypto regulation with global standards, enhancing market appeal. Potential outcomes include increased investment and clearer compliance frameworks. Vishal Achanta, Representative, Hashed Emergent, stated, "The COINS Act aims to turn India from a ‘regulatory minefield’ to a destination of choice for the crypto community."

The COINS Act, proposed by Hashed Emergent and Black Dot, aims to establish a comprehensive regulatory framework for cryptocurrencies in India. This proposed legislation addresses key issues such as taxation and regulatory uncertainty, which have long been barriers to the growth of the crypto industry in the region. The Act seeks to provide clarity and stability for both investors and businesses operating in the crypto space, potentially fostering greater innovation and adoption. The COINS Act is designed to create a structured environment for the issuance and use of stablecoins, a type of cryptocurrency whose value is pegged to another asset, such as a fiat currency. By establishing clear guidelines for stablecoin issuers, the Act aims to enhance consumer protection and ensure that these digital assets are used in a compliant manner. This move is significant as it aligns with global trends where stablecoins are increasingly being recognized as a viable form of digital currency.

The proposed legislation also includes measures to freeze assets if law enforcement suspects illegal activity, thereby strengthening the regulatory oversight and ensuring that the crypto industry operates within the bounds of the law. This aspect of the Act is crucial for building trust among investors and the general public, who have often been wary of the potential risks associated with cryptocurrencies. The COINS Act is part of a broader effort to reshape the digital advertising and fintech sectors through tax reforms, state bans, and data protection measures. By addressing these areas, the Act aims to create a more robust and transparent regulatory environment that can support the growth of the crypto industry while protecting the interests of all stakeholders. The introduction of the COINS Act is a significant step forward for India's crypto regulatory landscape. It provides a clear path for the industry to operate within a structured framework, addressing long-standing concerns about taxation and regulatory uncertainty. This move is expected to attract more investment and innovation in the crypto space, positioning India as a leader in the global digital currency market.