India’s Crypto Market Sees New hope Amid Policy Shifts
India is signaling a change in its crypto policies, attracting crypto service providers. Initially, India planned too release a crypto regulation paper after its G20 presidency in 2023. Though, the government is now recalibrating its stance due to global shifts. Ajay Seth, Secretary of india’s Department of Economic Affairs, noted the need for adjustment in light of these changes.
Currently, India taxes crypto income at 30% and deducts 1% at the source. This has deterred many traders, leading to low trading volumes. WazirX, once the largest crypto platform, saw a 90% drop in business and moved some operations to Dubai. But with policy hints, firms like Coinbase are registering with India’s Financial Intelligence Unit, following others like Binance and kucoin.
These moves align with a global trend where countries are creating friendlier crypto environments. The U.S., EU, Hong Kong, Australia, and UAE are among those making crypto more accessible.Hong Kong introduced measures for tokenization and virtual asset exposure.Australia proposed a four-pronged approach, including governance standards and licensing. Dubai and Abu Dhabi have also introduced frameworks to attract crypto firms.
These changes are part of a broader trend. Countries are making it easier for crypto traders and service providers. for instance,Hong Kong approved digital currency exchange-traded funds and stablecoin regulations. Australia introduced a regulatory framework for digital assets. This shift could revive India’s crypto market, possibly bringing back exchanges that left due to high taxes. As India hints at policy recalibration,the market may see a resurgence.This could mean good news for the industry, as more favorable policies could boost trading and investment. as India reconsiders its stance, the crypto market may see a revival. With these developments, India’s crypto landscape could become more welcoming, potentially reversing the trend of exchanges leaving due to stringent taxes. The Indian market, once hindered by high taxes, may soon see a return of crypto firms. This global trend, led by pro-crypto agendas, could revitalize India’s crypto scene.
