As India hints at a possible shift in its crypto regulatory stance, global crypto service providers are preparing for a renewed push into one of the world’s most promising digital asset markets. The potential recalibration marks a significant turning point after years of restrictive tax policies and regulatory uncertainty that stifled crypto growth across the country.
India Considers Reworking Its Crypto Framework
The move follows recent remarks by Ajay Seth, Secretary of India’s Department of Economic Affairs, who revealed that the government is re-evaluating its long-anticipated crypto discussion paper. Originally slated for release after India’s G20 presidency in 2023, the paper’s publication has been delayed amid evolving global policy shifts.
“We were ready with a discussion paper, but we now need to recalibrate it due to these changes,” Seth said during a recent roundtable discussion.
India currently imposes a 30% tax on crypto income and a 1% tax deducted at source (TDS), measures introduced in 2022 that caused a dramatic decline in domestic trading activity. These high tax rates led to an exodus of retail and institutional traders, forcing platforms like WazirX—formerly India’s leading crypto exchange—to scale down operations and partially relocate to Dubai.
Signs of a Comeback for Crypto in India
Despite the regulatory headwinds, optimism is returning to the Indian crypto market. According to a report by Bloomberg, major crypto firms are re-entering the landscape in anticipation of regulatory reform. On March 11, Coinbase registered with India’s Financial Intelligence Unit (FIU), signaling its intention to relaunch its retail trading platform in the country. The move follows similar registrations by Binance, Bybit, and KuCoin, indicating a renewed wave of interest among global players.
This shift aligns with a broader international trend toward more favorable digital asset policies. Led by Donald Trump’s pro-crypto agenda in the U.S. and progressive frameworks across Europe, Hong Kong, Australia, and the UAE, countries are moving to embrace the potential of digital finance while instituting protections for investors.
Global Regulatory Momentum Influencing India
Other jurisdictions have set notable precedents in recent months. In February, Hong Kong introduced regulations for tokenization, virtual asset exposure in authorized funds, and stablecoin issuer guidelines, alongside approval for crypto-backed exchange-traded funds (ETFs).
In March, Australia unveiled a four-pronged digital asset strategy, addressing governance standards, licensing requirements, custody regulations, and capital reserves for stablecoin issuers. Meanwhile, the Dubai Financial Services Authority (DFSA) and the Abu Dhabi Global Market (ADGM) have launched regulatory frameworks aimed at attracting crypto innovation and investment.
These international developments appear to be prompting Indian policymakers to reconsider their earlier stance. A more favorable regulatory environment could revive India’s once-thriving crypto ecosystem and open new doors for global exchanges, market makers, and investors seeking growth opportunities in Asia.
Outlook: Awaiting India’s Next Move
While there are no official deadlines for India’s updated crypto policy rollout, the growing interest from top-tier crypto firms suggests that the market is bracing for a comeback. Should the government move forward with regulatory recalibration, India could reclaim its position as a major crypto player on the global stage.
For now, the industry is watching closely—waiting to see whether talk will turn into action and unlock new opportunities in one of the world’s largest and most dynamic digital economies.
