India’s cryptocurrency landscape remains fraught with uncertainty as the government reaffirms its stringent 30% tax on crypto gains and blocks Bitcoin ETFs. This decision leaves investors and businesses grappling with compliance challenges and a lack of regulatory clarity. Here’s what you need to know about the latest Bitcoin news from India.
Why is India’s 30% crypto tax causing outrage?
India’s Ministry of Finance has decided to maintain its 30% tax on cryptocurrency gains, a policy introduced in 2022. This tax rate is significantly higher than those applied to other financial instruments, creating a hostile environment for crypto investors. Key points:
- 1% TDS on transactions exceeding INR 10,000 adds to compliance burdens
- No deductions allowed for losses in crypto trading
- Strict reporting requirements make tax evasion difficult
Bitcoin ETF rejection: What does it mean for investors?
The government has clearly stated that Bitcoin ETFs won’t be approved in the near future, cutting off a potential mainstream investment avenue. This contrasts sharply with developments in the U.S. and other markets where Bitcoin ETFs are gaining traction.
Regulatory framework absence creates chaos
India still lacks a structured regulatory framework for cryptocurrencies, forcing many businesses to relocate. Notable examples include:
| Company | Relocation | Reason |
|---|---|---|
| WazirX | Singapore | $230M cyberattack, regulatory uncertainty |
| CoinDCX | Considering move | $44M theft, lack of oversight |
How does India’s approach compare globally?
While Western markets are advancing crypto integration, India’s cautious stance isolates its market. BlackRock reports a 25% Bitcoin gain in 2025 due to regulatory progress elsewhere, while Indian investors face stagnation.
What’s next for crypto in India?
With no immediate policy changes expected, investors must navigate the current system carefully. The Income Tax Department’s intensified enforcement means compliance is more critical than ever.
Frequently Asked Questions
Can I avoid paying 30% tax on crypto gains in India?
No, the tax is mandatory and the Income Tax Department has sophisticated tracking mechanisms in place.
Will India ever approve Bitcoin ETFs?
Not in the near future according to current government statements, though policy could change long-term.
Why are crypto companies leaving India?
The combination of high taxes, lack of regulation, and security concerns make operating in India challenging.
How does India’s crypto tax compare to other countries?
At 30%, it’s among the highest globally, with most countries taxing crypto as capital gains at lower rates.
