Summary
- India will release a crypto regulation discussion paper in June 2025, opening the floor for public input.
- Industry leaders urge tax reforms, especially reducing the 1% TDS and 30% capital gains tax.
- Over 90% of Indian crypto activity has shifted to foreign platforms due to strict taxation.
- Global platforms like Binance and Coinbase are eyeing a return, showing renewed confidence.
- The RBI, once strongly anti-crypto, is now taking a more measured approach.
- If regulated smartly, India’s crypto market could surpass $15 billion by 2035.
India’s Crypto Regulation Paper: What to Expect
India is set to release a game-changing discussion paper on cryptocurrency regulation in June 2025. This long-awaited document is expected to kick-start the process of building a clear regulatory framework for one of the world’s fastest-growing digital asset markets.
The paper will:
- Propose policy directions for digital currencies.
- Include public consultation to ensure democratic participation.
- Address taxation, investor protection, and compliance norms.
This is not a binding law yet, but it marks a critical shift in tone from silence to structured dialogue.
Why Tax Reform is Key for a Crypto Revival
Since the introduction of a 30% tax on crypto capital gains and 1% TDS per transaction in 2022, India’s domestic crypto trading volume has plunged. In fact, reports suggest that over 90% of Indian crypto users have moved to foreign platforms.
Industry players are lobbying for a drastic reduction in TDS from 1% to 0.1%, which they say would still help the government track transactions without stifling innovation.
“We’re not asking to eliminate taxes, just make them reasonable so people can trade in India legally again,” says a leading crypto exchange founder.
The move could incentivize users to return to compliant Indian exchanges and boost national economic participation in the sector.
Global Influence & Industry Confidence
Recent developments globally are influencing India’s stance. With figures like Donald Trump openly supporting crypto, the global narrative is shifting toward acceptance.
The buzz is real. Binance and Coinbase—two of the largest crypto platforms—are re-engaging with the Indian market. Their comeback is seen as a vote of confidence in India’s regulatory potential.
If India plays its cards right, the domestic crypto market is projected to exceed $15 billion by 2035, according to several market watchers.
The RBI’s Evolving Crypto Stance
The Reserve Bank of India (RBI) has historically been critical of cryptocurrencies, often citing risk and volatility. But there seems to be a subtle shift in attitude.
Instead of rejecting crypto outright, the RBI is waiting to review the discussion paper before making further statements. While still cautious, this shows a willingness to listen and engage in dialogue.
This softening stance could create room for balanced regulation that doesn’t smother innovation.
What This Means for India’s Crypto Future
The release of this discussion paper is more than a bureaucratic step—it’s a signal that India is ready to take crypto seriously.
If the outcome is favorable, we can expect:
- Reduced taxes, making local trading feasible again.
- Clear compliance rules, helping platforms and users align with regulations.
- Increased investor confidence, both domestic and international.
This could lead to a more stable, transparent, and investor-friendly crypto ecosystem in India.
Final Thoughts
India stands at a crypto crossroads. With global attention, local innovation, and policy discussion aligning, June 2025 could be a watershed moment.
If the government truly listens—balancing freedom with safeguards—India could unlock its potential as a global crypto hub.
Let’s just hope the discussion paper turns into real, actionable regulation—not just more talk.