India Reconsiders Crypto Policy Amid Global Adoption Shifts: Report

India is reviewing its crypto policy as other countries including the US, shift attitudes towards the asset class. The government is reportedly reassessing a discussion paper on cryptocurrencies, which was due for release in September 2024, Reuters reports.

According to India’s Economic Affairs Secretary Ajay Seth, digital assets “don’t believe in borders” and India cannot take decisions one-sided.

India’s decision to review crypto policy follows US President Donald Trump’s recent signing of a digital assets executive order. The order introduced a roadmap for regulating cryptos, while signaling a broader strategy for boosting innovation in the asset space.

“More than one or two jurisdictions have changed their stance towards cryptocurrency in terms of the usage, their acceptance,” Ajay Seth noted. “In that stride, we are having a look at the discussion paper once again.”

However, India’s Union Budget 2025, which was presented by Finance Minister Nirmala Sitharaman on Saturday, did not explicitly make any mention about the sector. But, the budget has proposed to tightened the norms for taxpayers engaged in cryptocurrency trading.

Per a local daily Business Today report last week, a panel, led by the Secretary of the Department of Economic Affairs (DEA), is expected to release a crypto consultation paper by March 2025. Further, the paper will seek feedback from stakeholders in shaping a regulatory framework for virtual digital assets (VDAs).

India Doesn’t Want to Be Left Behind in Crypto Policy

India has known for its stringent crypto stance with a 30% capital gains tax and 1% TDS on transactions. Despite that, Indian investors have braved the country’s steep trading taxes. Per Chainalysis 2024 report, India has led the way in global crypto adoption for the second straight year.

Last year, Ajay Seth noted that India’s landmark crypto policy paper would focus on initiating stakeholder consultation, rather than proposing immediate legislation. At the time, he indicated that India would analyze global approaches to crypto regulation before finalizing its stance.

This analytical approach aligns with India’s efforts during its G20 presidency to prioritize a global consensus on crypto rules.