India is reconsidering its stance on cryptocurrencies, driven by the changing global landscape and growing adoption of digital assets. Economic Affairs Secretary Ajay Seth emphasized that India's stance on crypto cannot be unilateral, as these assets "don't believe in borders".

The review comes as countries like the US, Japan, and Russia explore integrating Bitcoin into their financial systems. The US, in particular, is set to establish a "digital asset stockpile." India's reassessment may delay the release of its long-awaited discussion paper on crypto regulations, initially scheduled for September 2024.

Despite the review, India's current crypto tax structure remains unchanged, imposing a 30% tax on gains and a 1% Tax Deducted at Source (TDS) on transactions. The government has also proposed including "virtual digital assets" under Section 158B of the Income Tax Act.

Historically, India has maintained a cautious stance on cryptocurrency, pushing for a Central Bank Digital Currency (CBDC) as an alternative to decentralized cryptocurrencies. Major cryptocurrency exchanges in India have faced notable issues, including unpaid tax liabilities and compliance challenges. #BitcoinVsTariffs