India’s crypto industry pushes for major tax cuts to revive the sector 

• India’s crypto sector is aggressively lobbying for a friendlier tax regime
• Most global players are back to get a slice of the expected $15 billion crypto market boom

India’s crypto industry is reportedly lobbying for a reversal of the sector’s restrictive tax regime. According to a report by the Financial Times (FT), the local industry has been working for tax cuts on the 30% crypto gains and a 1% tax deducted at source (TDS) for every transaction. 

One of the industry leaders, Ashish Singhal, co-founder of crypto exchange CoinSwitch, told FT that discussions between policymakers and the sector now take place more frequently than before. 

He added that President Donald Trump’s pro-crypto shift has been a key catalyst for the ongoing engagement. 

“Thanks to Trump, the positive momentum that has happened in crypto has impacted India as well.”

India pushes for 0.1% TDS

The 1% TDS was introduced to enhance the traceability of the transactions. However, Singhal argued that a 0.1% TDS could still achieve the objective, instead of the harmful effect of driving trading and investors offshore. 

“A 0.1 per cent transaction tax would achieve the same traceability objectives without discouraging trading. Now regulators are more closely talking to us, understanding what the space is.”

The restrictive tax regime was adopted in 2022 and triggered a mass exodus, including global players like Coinbase, Binance, and Bybit. In fact, overall crypto trading volumes tanked by nearly 90% as the regulator intensified its clampdown, including those linked to anti-money laundering issues.  

The agency, India’s Financial Intelligence Unit (FIU), slapped most exchanges with penalties. However, Binance, KuCoin, and Coinbase have secured licenses to relaunch operations in 2025 after settling the fines. 

Meanwhile, the ongoing crypto shift could help capitalize on India’s massive crypto market, which is expected to grow to $15 billion by 2035, according to Grant Thornton. That would mean a 7x growth from $2.5 billion in 2024. 

Despite these positive developments, however, the Reserve Bank of India has been a strong critic of the sector, citing the potential negative impact of crypto on financial stability.