India Reconsiders Crypto Stance Amid Global Shift

India, long known for its stringent stance on cryptocurrencies, is reconsidering its policies in light of global shifts in digital asset adoption. The country's Economic Affairs Secretary, Ajay Seth, has confirmed that India is re-evaluating its discussion paper on digital assets, originally scheduled for release in September 2024. This move comes as the United States, under President Donald Trump, has taken a more crypto-friendly approach, potentially influencing India's strategy.

The Indian government's reconsideration of its crypto policies is a significant development, as it signals a potential shift in the country's stance on digital assets. However, it is essential to note that the government has not yet provided any concrete details on the changes it is considering. The Indian crypto industry is eagerly awaiting further information on the government's plans, as any changes in policy could have a significant impact on the sector's growth and development.

Despite the potential for policy changes, the Indian government has not yet provided any relief to crypto traders in the 2025 Union Budget. In fact, the government has proposed even stricter measures, including retrospective audits on transactions dating back 48 months and a crippling 70% penalty on unpaid taxes. The 30% tax on crypto gains remains in place, with no exemptions, deductions, or differentiation between short-term and long-term holdings. The controversial 1% Tax Deducted at Source (TDS) on every crypto transaction also stays, further discouraging active trading within the country.

The response from India's crypto industry has been mixed, with key players voicing their concerns over the lack of relief in the latest budget. CoinDCX CEO Sumit Gupta applauded the government's decision to revisit its crypto policy but urged for friendlier regulations and clarity. CoinSwitch co-founder Ashish Singhal called the budget a "mixed bag for crypto," pointing out that while the mandatory reporting of crypto transactions was a step toward legitimacy, the lack of tax relief was a major disappointment.

As India reconsiders its crypto policies, the global digital asset landscape continues to evolve. The United States, under President Donald Trump, has taken a more crypto-friendly approach, potentially influencing other countries to follow suit. El Salvador, for example, has added 52 Bitcoins to its holdings since the start of 2025, despite a recent agreement with the IMF that restricts public sector