India Softens Crypto Stance Amid Trump's Pro-Crypto Push

India Revisits Its Tough Crypto Stance Amid Trump's Pro-Crypto Shift

India is reconsidering its stance on cryptocurrencies, spurred by recent global developments and Donald Trump's pro-crypto policies. Ajay Seth, India's Economic Affairs Secretary, told Reuters that the government is reviewing its long-delayed crypto discussion paper. Seth noted, "More than one or two jurisdictions have changed their stance," prompting India to reassess its approach since digital assets "don't believe in borders."

Trump's Crypto Push Sparks Global Ripple Effect

Trump's recent push for a U.S. cryptocurrency working group has influenced several countries to soften their views on digital assets. With talk of national crypto stockpiles and regulatory frameworks gaining momentum in the U.S., hopes for widespread crypto adoption have increased. Meanwhile, Indian crypto holders are still facing regulatory uncertainty despite the sector's rapid growth in the country.

Indian Traders Hit with Heavy Tax Penalties

While the government reviews policy, crypto traders in India face tax penalties of up to 70% on undisclosed profits, according to Cointelegraph. Finance Minister Nirmala Sitharaman announced that crypto would fall under Section 158B of the Income Tax Act, with gains subject to retrospective block assessments starting February 2025. The move is part of a broader effort to tighten tax compliance in the sector.

Moreover, exchanges like Binance and Bybit have faced millions in unpaid tax demands, with Bybit halting operations in India altogether due to regulatory hurdles. As global tax laws tighten, the crypto industry is calling for greater clarity and fairer regulations.