India Considers Crypto Tax Cuts Amid Support from Trump’s Pro-Crypto Narrative!

Jakarta, Pintu News – The crypto market in India is undergoing a transformative period with lobbying for significant tax cuts. This comes as the Indian government warms relations with the digital asset industry, which was previously considered a regulatory gray area.

The new policy comes amid negotiations for a broader trade agreement with the United States and the return of former US President Donald Trump, who is known for his pro-crypto stance.

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Modi Government’s Open Dialogue with Crypto Industry

The Indian government, under the leadership of Narendra Modi, is now open and responsive to the crypto industry. Ashish Singhal, co-founder of CoinSwitch, stated that previously infrequent policy meetings are now being held regularly. This increased frequency of meetings shows a significant change in the government’s attitude towards the crypto industry.

Strict tax policies implemented since 2022, with an income tax rate of 30% and TDS (Tax Deducted at Source) of 1% per transaction, have driven most of India’s crypto trading activity offshore. According to a report from the Esya Center, over 90% of Indian crypto trading now takes place on offshore platforms.

Also read: Trump Media Group Denies $3 Billion Fundraising Plan for Crypto Investments!

Global Influences and the Return of Key Market Participants

With the return of Donald Trump to the White House and his crypto-supportive stance, there has been an increase in positive momentum in the global crypto industry which has also impacted India. Major exchanges like Coinbase and Binance, which had previously left the Indian market, are now returning and looking to re-establish their presence in the domestic market.

The projected growth of India’s domestic crypto market is tantalizing, with estimates rising from $2.5 billion in 2024 to over $15 billion in 2035. The return of these global players signals intensified competition in the Indian crypto market.

Also read: These 3 Crypto are Predicted to Beat the Rise of Bitcoin (BTC)!

Expectations for Better Tax and Regulatory Policies

Although no tax cuts were included in the Union Budget released in February, hopes for tax reforms are still high among industry players. Naga Harish of Mudrex emphasized that the current tax policy could be a huge hindrance to the industry’s growth.

The Reserve Bank of India (RBI), which was previously a heavy critic of crypto, now seems to be softening. While it still issues warnings about crypto’s impact on financial stability, the RBI is no longer openly attacking the industry. This more neutral approach is expected to help in creating regulations that are more supportive of the growth of the crypto industry.

Conclusion

With the ongoing policy dialog, the re-emergence of global players, and a growing user base, the crypto industry in India is hoping for regulatory clarity and tax breaks soon. This will be an important step in ensuring that India is not left behind in adoption and innovation in the global crypto sector.

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Reference

• Crypto Times. India Eyes Crypto Tax Cuts Amid Trump’s Pro-Crypto Return. Accessed on May 28, 2025
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