India’s Future in Crypto Is Uncertain as Government Rethinks Regulation
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- India is reviewing its cryptocurrency policy in light of global adoption. Jio Platforms has launched JioCoin to signal a growing interest in blockchain technology.
As global cryptocurrency adoption increases, many countries are rethinking their attitude towards digital assets. This shift has gained momentum following the election of Donald Trump and his vision of establishing a “Strategic Bitcoin Reserve.” Bitcoin [BTC]’s historic rise to $100,000 has intensified the discussion on regulatory frameworks. However, this evolving landscape has led to delays. One example is a discussion paper that was originally scheduled for September 2024 but will now be published this year. India’s Economic Affairs Minister Ajay Seth stated: “Amidst this, India is reviewing its cryptocurrency policy. We are re-reviewing the discussion paper in this step.
Seth also stressed that cryptocurrency “does not believe in borders,” which makes it impossible for India to take a unilateral position. He did not mention the United States directly, but his comments come shortly after Trump launched a cryptocurrency group. The task force supporting Trump’s new policy will evaluate a national crypto reserve and draft new crypto regulations.
Review of India’s Crypto Position
India’s dominance in the crypto world is growing.
India ranked first in the Chainalysis Global Crypto Adoption Index, reflecting high engagement on local exchanges, trading transactions, and DeFi activities. In India, digital assets are currently subject to a 30% capital gains tax with no distinction between short-term trading or long-term investments. Legal experts such as Supreme Court lawyer Amit Kumar Gupta have criticized this tax policy as overly punitive and noted that authorities view cryptocurrencies as riskier than gambling; demonstrating the government’s deep-rooted skepticism towards the sector.
What’s next?
Jio Platforms recently introduced JioCoin to the Polygon [POL] network, highlighting how domestic companies are embracing blockchain technology despite historically conservative stances from government bodies. Indian investors remain active in the crypto market despite high taxes and strict oversight proportions; indicating that increasing involvement suggests regulatory resistance may not halt adoption altogether.
The future of India’s cryptocurrency industry hinges on policymakers’ willingness to either embrace progressive frameworks or continue pursuing strict regulations as they navigate their balance between innovation and control over digital assets.
