India Reconsiders Crypto Stance Amid Global Thaw

India's stance on cryptocurrency has been a subject of much debate and speculation in recent months. The country, which has been largely ambivalent towards digital assets, is now considering a review of its crypto policies as the global outlook on cryptocurrency begins to thaw.

The Indian government has been taxing digital assets since 2022, imposing a 1% tax-deducted-at-source (TDS) on crypto transactions and a 30% capital gain tax. However, the crypto sector has been pushing for a more favorable tax regime and policy clarity to facilitate the growth of digital assets in the country. Despite these efforts, the government has not yet shown any signs of easing the taxation or providing the desired policy clarity.

India's review of its crypto stance comes as many countries appear to be taking a softer approach to cryptocurrency, following the lead of the U.S. government. The U.S. has been seen as a crypto-friendly regime, with the potential for widespread adoption and approval of more financial products linked to tokens. This shift in global sentiment has encouraged India to re-evaluate its position on crypto.

In an interview with Reuters, India's Economic Affairs Secretary Ajay Seth confirmed that the country is having another look at the crypto discussion paper that was put on hold last year. He noted that the review is part of a broader trend of jurisdictions changing their stance towards cryptocurrency, in terms of usage, acceptance, and the importance of crypto assets.

While India's review of its crypto policies is a positive development for the crypto sector, it remains to be seen whether the government will ultimately adopt a more favorable stance towards digital assets. The crypto market continues to face challenges and uncertainties, including the impact of global events such as trade tariffs and geopolitical tensions.

The recent announcement of tariffs by U.S. President Donald Trump has sent shockwaves through global markets, triggering a sell-off in both stocks and crypto. Investors fear that these tariffs will push inflation higher, forcing the Federal Reserve to keep interest rates elevated for longer, leading to a risk-off sentiment across financial markets.

The crypto market has reacted swiftly to the news, with Bitcoin dropping 5%, Ethereum slumping 10%, and other major cryptocurrencies such as Dogecoin and XRP experiencing significant declines. In just 24 hours, over $2.1 billion worth of crypto positions were liquid