The Indian government has reaffirmed its stringent cryptocurrency policies, retaining a 30% tax on digital asset gains and rejecting plans to approve Bitcoin exchange-traded funds (ETFs). This decision deepens regulatory ambiguity for investors and businesses in the country’s cryptocurrency sector.
India’s Ministry of Finance confirmed the continuation of the controversial tax framework, which includes a 30% levy on cryptocurrency profits and a 1% tax deducted at source for transactions exceeding ₹10,000. These measures have been in place since 2022 despite industry objections.
Government officials explicitly ruled out approvals for Bitcoin or cryptocurrency-based ETFs, diverging from international regulatory trends where such financial products have gained significant traction. The refusal highlights India’s cautious stance toward mainstream crypto adoption.
Persistent regulatory uncertainty combined with major security breaches – including a $230 million cyberattack on WazirX and a $44 million theft from CoinDCX – has prompted several cryptocurrency exchanges to relocate operations overseas. Industry reports indicate declining investor confidence and stunted market growth attributed to the restrictive policies.
Crypto businesses and investors continue advocating for regulatory reforms to address operational challenges, emphasizing the need for clearer policies to stabilize India’s digital asset ecosystem.