India Likely to Maintain 30% Crypto Tax and Reject Bitcoin ETF Approvals Amid Regulatory Uncertainty

Key Points

1. India's Ministry of Finance confirms the continuation of a 30% tax on cryptocurrency gains and a 1% tax deducted at source on transactions exceeding INR 10,000, in effect since 2022.

2. The Indian government has ruled out approvals for Bitcoin or other cryptocurrency-based ETFs, diverging from global trends where such ETFs are gaining traction.

3. Regulatory uncertainty and security breaches, such as the $230 million cyberattack on WazirX and the $44 million theft from CoinDCX, have led some crypto exchanges to relocate overseas.

4. The lack of clear policies and ETF approvals has negatively impacted investor sentiment and market growth in India's crypto sector.

5. Industry stakeholders continue to advocate for regulatory reforms to address the challenges faced by crypto businesses and investors in India.