The excitement is swelling throughout the cryptocurrency market. Bitcoin is attempting to break out at $112K, and Ethereum is stable following the Pectra upgrade. According to reports, the Indian cryptocurrency industry is stepping up its lobbying efforts for tax reforms, finding a chance as authorities become more accepting of digital assets.
Reversing the high taxes that were implemented in 2022 is at the core of the industry's demands. To reduce illicit activity, these measures, which include a 30% capital gains tax and a 1% penalty on all cryptocurrency transactions, pushed over 90% of Indian cryptocurrency trade abroad, according to a report by the Esya Center.
A 0.1% transaction fee, according to industry leaders, could provide the same traceability without impeding expansion.
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"The positive momentum that has happened in cryptocurrency has affected India as well, thanks to Trump," CoinSwitch co-founder Ashish Singhal told the publication. Meetings with officials have shifted from annual to almost monthly, he said. "Regulators are now communicating with us more directly and are aware of the space."
India's stance on cryptocurrency has changed from one of animosity to careful cooperation. The Supreme Court later overruled the Reserve Bank of India's 2018 push for a banking ban after it compared cryptocurrencies to Ponzi schemes.
While the central bank remains skeptical, its tone has cooled. “The relationship with the RBI has gone from negative to neutral,” said Singhal. “I will still not quite call it positive yet.”
Binance Return as Market Eyes $15B Growth by 2035
Binance, which had earlier exited India, is now coming back. According to Grant Thornton, the nation's cryptocurrency market, which is presently valued at about $2.5 billion, is expected to reach over $15 billion by 2035. India appears to recognize that prohibiting cryptocurrency is no longer realistic and that bringing activity onshore with improved regulations could actually increase the tax base, according to Tom Duff Gordon of Coinbase.
