#FTXrepayment As of February 19, 2025, the cryptocurrency landscape in India is experiencing significant developments:
Regulatory Environment:
Policy Reassessment: India is reevaluating its cryptocurrency policies in response to global regulatory shifts. Economic Affairs Secretary Ajay Seth emphasized that India's approach cannot be unilateral, given the borderless nature of cryptocurrencies.
Taxation Measures: The Union Budget 2025-26 introduced stringent measures, including a 70% penalty on undisclosed gains from cryptocurrency transactions, retroactively applicable to profits from the past 48 months. This targets unreported earnings from the 2021–2023 crypto boom.
Ongoing Tax Policies: Despite industry hopes, the 2025 budget did not alter the existing 30% tax on cryptocurrency gains or the 1% TDS on transactions, which continue to impact liquidity and investor participation.
Market Activity:
Exchange Re-entry: Coinbase is actively engaging with Indian authorities, including the Financial Intelligence Unit (FIU), to secure approvals for re-entering the Indian market after a year-long hiatus.
