Cryptocurrency Legislation and India's Financial Plan
India is currently in the process of regulating Virtual Digital Assets (VDAs), including cryptocurrencies and Non-Fungible Tokens (NFTs). As of August 2025, a finalized cryptocurrency regulation bill has yet to be passed, but the government is actively working towards comprehensive regulation.
The Central Board of Direct Taxes (CBDT) is soliciting feedback from industry stakeholders on various aspects, such as the need for new legislation, the regulatory agency that should oversee VDAs, and tax compliance issues like the current 30% tax and 1% TDS on crypto transactions.
The Securities and Exchange Board of India (SEBI) has already started overseeing crypto tokens that resemble securities, and a multi-agency regulatory framework involving SEBI, the Reserve Bank of India (RBI), and the Finance Ministry is proposed. The government is also preparing for a Financial Stability Board peer review and aims to align with global standards.
The current VDA tax regime is heavy, with a 30% tax on gains and a 1% TDS at source on transactions. Discussions and consultations continue as India debates whether to create a comprehensive VDA law or maintain the current framework.
Stablecoins, digital currencies pegged to the US dollar, are popular among Indian users, particularly for cross-border payments and portfolio diversification. However, India has not recognized stablecoins as legal tender, and the RBI promotes its centrally controlled digital currency, the e-rupee.
Crypto futures trading platforms like CoinDCX, Pi42, and CoinSwitch are popular investment options within India’s regulatory environment. These platforms offer features ranging from leveraged futures to integrated lending and staking on compliant platforms.
In summary, India's cryptocurrency regulation is in an evolving phase. Tax policies are being enforced, but the primary legislation is still under stakeholder consultation. Regulatory authorities are considering a multi-agency oversight model, and stablecoins are under particular scrutiny for use-case-based regulation, especially for cross-border and remittance-related activities.
It is important to note that the government of India is not planning to ban cryptocurrencies altogether. Instead, they are considering treating them as market-regulated assets and understanding all aspects of digital assets to make them regulatory. The prime minister of India recognizes the potential of cryptocurrencies as a development medium for the nation, and the cryptocurrency market in India continues to grow with an increasing number of enthusiasts.
References:
- India's Cryptocurrency Regulation: A Work in Progress
- India Weighs Regulating Cryptocurrency Use Cases, Not Banning Them Outright
- India's Cryptocurrency Regulation: The Road Ahead
- India's Cryptocurrency Market: A Growing Ecosystem
- India's Cryptocurrency Regulation: The Current State and Future Prospects
Read also:
- MRI Scans in Epilepsy Diagnosis: Function and Revealed Findings
- Hematology specialist and anemia treatment: The role of a hematologist in managing anemia conditions
- Enhancing the framework or setup for efficient operation and growth
- Hydroelectric Power Generation Industry Forecasted to Expand to USD 413.3 Billion by 2034, Projected Growth Rate of 5.8% Compound Annual Growth Rate (CAGR)
