
India Crypto Users Push for Policy Change Amid Tax Burden
India Crypto Users Push for Policy Change Amid Growing Demand
Rising Crypto Adoption Despite Regulatory Challenges
India's cryptocurrency landscape is experiencing unprecedented growth despite restrictive government policies and heavy taxation. According to crypto educator Sujal Jethwani, who commands a community of 400,000 followers across social media platforms, the mounting demand for digital assets may force the Indian government to reconsider its current approach.
Speaking at the Binance Crypto-Powered Tour in Bhutan, Jethwani expressed optimism about India's crypto future, noting a significant migration of traditional traders to cryptocurrency markets.
Stock and Forex Traders Moving to Cryptocurrency
The shift in India's trading landscape is becoming increasingly apparent. Traditional stock market and forex traders are gravitating toward cryptocurrency investments, creating what Jethwani describes as a "huge surge" in crypto participation across the country.
"There's a huge surge of crypto traders and investors in India right now. People are not going to leave it," Jethwani explained, highlighting the persistent demand despite regulatory uncertainties.
India's "Suppressed Spring" Crypto Environment
Jethwani characterized India's current cryptocurrency situation as a "suppressed spring," where restrictive policies and high taxes have failed to curb growing interest in digital assets. The metaphor reflects how regulatory pressure has been unable to contain the expanding crypto ecosystem.
The educator believes this suppressed demand will eventually catalyze positive policy changes, as the government recognizes the futility of restricting a technology that continues to gain mainstream adoption.
Heavy Tax Burden on Crypto Transactions
India's cryptocurrency taxation framework presents significant challenges for traders and investors. The country imposes a flat 30% tax rate on profits from selling virtual digital assets (VDAs), creating a substantial financial burden for crypto participants.
Additionally, the government enforces a 1% Tax Deducted at Source (TDS) on all cryptocurrency transactions exceeding $115. This tax applies to both buyers and sellers of digital assets, further complicating the trading process and reducing market liquidity.
Political Awareness and Bitcoin Reserve Discussions
Recent political developments suggest growing awareness of cryptocurrency's potential within India's ruling circles. On June 26, Pradeep Bhandari, national spokesperson for India's ruling party, advocated for the country to consider establishing its own Bitcoin reserve.
Bhandari's proposal follows similar initiatives in the United States and calls for regulatory clarity in India's crypto sector. He positioned India as capable of creating a sovereign Bitcoin strategy, indicating shifting perspectives within the political establishment.
Government Response and Future Outlook
Despite the current restrictive environment, Jethwani remains confident that policy changes are inevitable. He acknowledges that India's historical approach to adopting new technologies suggests progress may be gradual.
"The Indian government is going to take it seriously sooner or later. They have to," Jethwani stated, emphasizing the mounting pressure from crypto users and market participants.
User-Driven Policy Change
The crypto educator predicts that growing user demand will ultimately force regulatory reform. As more Indians engage with cryptocurrency despite current obstacles, the government will face increasing pressure to create favorable regulatory frameworks.
"Eventually, it's going to happen. The government will take it seriously, and we are going to get favorable rules," Jethwani concluded, expressing confidence in market-driven policy evolution.
Comprehensive Regulatory Framework Still Pending
While India has implemented taxation policies for cryptocurrencies, the country has yet to introduce a comprehensive regulatory framework. This regulatory gap creates uncertainty for traders and investors while potentially limiting India's participation in the global digital asset economy.
The absence of clear regulations, combined with heavy taxation, has created a challenging environment for crypto businesses and users. However, growing political awareness and user demand suggest that more balanced policies may emerge in the future.
Conclusion
India's cryptocurrency sector stands at a critical juncture, with user demand continuing to grow despite regulatory challenges and heavy taxation. As traditional traders migrate to crypto markets and political awareness increases, the pressure for policy reform intensifies.
The success of crypto adoption in India will likely depend on the government's ability to balance regulatory oversight with market innovation, creating frameworks that protect consumers while allowing the digital asset ecosystem to flourish.
For more Crypto, Web3, Blockchain & AI news visit : www.metamoonmedia.com