India's Crypto U-Turn: Global Shift Sparks Indian Reevaluation

India's Stance on Crypto Assets Shifts Amid Global Sentiment Change

India, traditionally known for its anti-crypto approach, is poised to take a U-turn on its stance towards cryptocurrencies as global sentiments shift. The appointment of pro-crypto US President Donald Trump has sparked a global race to adopt crypto, with India aiming not to be left behind.

Currently, India imposes a draconian 30% capital gains tax on crypto assets, treating them on par with betting activities. The country's harsh amendment under Section 158B of the Indian Income Tax Act now includes Virtual Digital Assets (VDAs), subjecting tax assessees to a hefty 70% penalty for undisclosed crypto assets.

India's view on crypto remains largely negative, with practitioners like Amit Kumar Gupta considering it a mode of money laundering and terror funding. However, the country's economic affairs secretary, Ajay Seth, has acknowledged the borderless nature of digital assets, hinting at a potential review of the country's stance on crypto and a possible easing of existing taxes.

Crypto Adoption Gains Momentum Globally

The global adoption of cryptocurrencies is gaining momentum, with nations like El Salvador leading the way. Despite a recent $1.4B agreement with the IMF that restricts public sector participation in crypto, El Salvador continues to accumulate Bitcoin, with its holdings now valued at around $600M.

President Nayib Bukele believes that Bitcoin can benefit over 70% of the general public who lack access to traditional banking methods. This commitment to crypto adoption, despite international pressure, underscores the growing global interest in digital assets.

Bitcoin's Path Ahead: Short-term Corrections and Long-term Optimism

Bitcoin has been trading in a range for the past two months, with recent corrections triggered by US President Donald Trump's tariff announcements. Despite short-term fears among traders, long-term Bitcoin holders view these corrections as opportunities to accumulate.

Analysts like Pentoshi and James Check predict a macro bull run in Bitcoin, with the crypto market cap expected to surge by another 26% and reach around $4.2T. These short-term corrections are seen as healthy for the markets and an opportunity to add BTC to one's portfolio.