India Reviewing Crypto Stance Amid Shifting Global Views: Senior Official

The Indian government is reviewing its views on cryptocurrencies, given the apparent shift in global positions regarding the emerging industry, a senior official revealed Sunday.

While the review could bring forth positive changes for the country's crypto sector, it could also delay the publication of a crypto-focused discussion paper that was supposed to be released in September last year.

India Cautiously Approaches the Review

India is one of the countries that has had a stringent regulatory stance on cryptocurrencies. Trading taxes are also relatively higher in India than in some other jurisdictions.

On the other hand, the country appears to have become more open-minded following the pro-innovation crypto policies announced by U.S. President Donald Trump.

"More than one or two jurisdictions have changed their stance towards cryptocurrency in terms of the usage, their acceptance, where do they see the importance of crypto assets. In that stride, we are having a look at the discussion paper once again," Indian Economic Affairs Secretary Ajay Seth told Reuters Sunday.

Seth did not specifically mention which nations might have inspired India to reassess its crypto views, but in recent months, the U.S., El Salvador, and the Kingdom of Bhutan have been in the lead in terms of positive crypto policies.

Still Seth was very clear that the Indian government remained wary of crypto assets, which he said "don't believe in borders," which is why India cannot be unilateral in terms of policies around the emerging sector.

India Retains Crypto Tax Structure

Despite early concerns about the Indian government's hefty trading taxes on crypto, the country's Union Budget 2025 that was unveiled Saturday did not reveal any reductions in virtual digital asset (VDA) taxes.

Currently, VDA taxes include a 30% tax on income from crypto assets and other digital assets. There is also a 1% tax deduction on every transaction amounting to Rs 10,000 (approximately $114).

Many local crypto players are unhappy about the development, saying the government dashed their hopes for better tax policies on crypto.

Why is India More Cautious of Crypto?

India, like the European Union, has been more careful in developing policies around crypto over the years, but last year's devastating hack on leading Indian crypto exchange WazirX appears to have affected the cautious approach on a deeper sense.

The WazirX exploit wiped out $230 million in Shiba Inu (SHIB), Ethereum (ETH), and various other tokens.

Prominent crypto sleuth ZachXBT said at the time that the hack "has the potential markings of a Lazarus Group attack." Lazarus Group is a notorious hacking group that's been linked to North Korea.

India Still King of Crypto Adoption

Despite the government's strict policies on crypto regulation and taxation, India was the top country on Chainalysis' Global Crypto Adoption Index last year.

India outpaced Nigeria, Indonesia, Vietnam, the United States, and several other countries that logged high figures in terms of blockchain and crypto adoption.