India had a difficult relationship with cryptocurrency. Since 2013, the central bank of the country, the Reserve Bank of India (RBI), has warned people of the risk of digital assets. In 2018, things got worse when the RBI prohibited banks from working with cryptographic companies, which makes it almost impossible to operate. But in 2020, the Supreme Court of India removed the ban, giving Crypto a second chance.
Even after that, the government remained strict. It introduced a strong 30% tax on cryptographic benefits, which makes exchanges very expensive. Recently, a new 70% tax has been announced on uncommon crypto gains. In short, this means that if they lose money, they cannot use these losses to reduce their tax burden. In addition, if someone performs cryptographic transactions worth more than 50,000 ₹ per year, he must pay additional taxes.
Many believe that these severe rules aim to discourage people from using cryptocurrency. Some government representatives even compare crypto to the game, saying that it is only used for illegal activities. Interesting fact despite so many challenges data suggests that the India’s cryptography market was worth $ 2.6 billion in 2024 and is expected to reach $ 13.9 billion by 2033, increasing to 18.48% per year.
Trump’s crypto push could change everything
After international pressure, reports suggest that India can rethink the jet-suivi from its cryptographic framework. The buzz came afterwards, Donald Trump had signed an executive decree to explore digital assets at the national level. Its administration even plans to stocky of cryptocurrencies belonging to the government. This decision could push other countries to act quickly before lagging behind in the global cryptography race.
India can be forced to rethink its crypto rules
According to the Reuters reportsIndia is now examining its crypto policy. The secretary of economic affairs, Ajay Seth, recently said that digital assets “do not believe in borders”, suggesting that India could have to change his position. If other large countries are starting to adopt crypto, India may have no choice but to follow.
Currently, the Indian government focuses more on its own digital currency from the Central Bank (CBDC). Former RBI governor, Shaktikanta DAS, described CBDCs as “the future of money”, and India has already launched a digital rue pilot program. The RBI also works on a cross -border payment system where CBDC could be used for transactions between countries.
The Indian government is willing to adopt the crypto, but they also put pressure for the unified cryptography regulations to strengthen digital assets and also reduces risk factors. But for the moment, strict rules and high taxes make it difficult to grow industry.