With 100 Million Crypto Users, Indian Exchanges Say It’s Time to Fix the Tax Laws

Key Points

1. India's crypto tax system includes a 30% tax on capital gains and a 1% TDS on every trade, which has led to over 90% of Indian crypto trading moving offshore.

2. Ritesh Pandey argues that crypto is a 'yuva asset class' appealing to India's youth but is hindered by heavy taxes and unclear regulations.

3. India has over 100 million crypto users (7% of the adult population) and is projected to become a $15 billion market by 2035, with significant growth in smaller cities.

4. Crypto platforms like CoinDCX and CoinSwitch propose reducing TDS to 0.01%, increasing tax exemption limits, and allowing loss offsets to boost market liquidity.

5. The current tax regime contrasts with crypto-friendly jurisdictions like Dubai and Singapore, leading to a 'brain drain' of crypto startups and talent from India.