India Softens Stance on Cryptocurrencies Amid Global Shift

India Reevaluates Its Cryptocurrency Policy Amid Changing Global Trends

India is reconsidering its stance on cryptocurrencies as global trends shift and other countries adopt more favorable policies towards digital assets. The Indian government is reviewing its long-awaited discussion paper on cryptocurrency regulations, acknowledging that several jurisdictions have altered their views on cryptocurrencies.

India's Economic Affairs Secretary, Ajay Seth, emphasized that cryptocurrencies do not recognize borders, indicating that the country's approach to digital assets cannot be unilateral. This review comes as Donald Trump's administration in the United States has shown support for cryptocurrencies, influencing other nations to soften their stances.

In India, the government is tightening tax compliance in the cryptocurrency sector. Finance Minister Nirmala Sitharaman announced that cryptocurrencies would fall under Section 158B of the Income Tax Act, subjecting gains to retrospective block assessments starting February 2025. This move aims to address unpaid taxes in the sector, with crypto traders facing penalties of up to 70% on previously undisclosed profits.

Exchanges like Binance and Bybit have faced significant unpaid tax demands, with Bybit temporarily suspending its services in India due to regulatory pressures. As global tax laws tighten, the crypto industry is calling for greater clarity and fairer regulations. Investors can stay informed by leveraging tools like Center to track their favorite cryptocurrencies.