Key Takeaways
- The Indian Finance Ministry says there are no current plans to regulate crypto.
- No crypto data has been collected in five years despite a 1% TDS since 2022.
- Crypto firms continue to flee India due to the lack of regulatory clarity.
India’s crypto community may have to keep waiting.
Despite growing rumors about an upcoming draft crypto bill, the Finance Ministry has officially clarified that the government has no immediate plans to regulate digital assets.
The announcement scuttles hopes of a clearer regulatory framework, which the industry has been demanding for years.
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Heavy Taxes, No Oversight
The government’s latest statement in Parliament confirmed that crypto assets remain unregulated and that no meaningful data has been collected over the last five years.
This comes despite introducing a 30% tax on crypto gains and a 1% tax deducted at source (TDS) in 2022.
Even after implementing significant taxes, the revelation that India hasn’t gathered any crypto data has sparked frustration among traders and businesses alike.
Many say the current system punishes users without offering protection or clarity.
The silence from regulators is all the more glaring in light of global momentum.
As the U.S. embraces a more pro-crypto stance under President Donald Trump, India appears to be standing still.
India’s Crypto Exodus
The lack of progress is costing India billions.
Several major crypto companies, including WazirX, have moved their operations overseas.
The exchange, once one of India’s largest, suffered a $230 million hack in 2023 and has since relocated to Singapore for restructuring.
Indian customers, meanwhile, are still waiting to recover their funds—both hacked and unhacked.
Siddharth Sogani, head of blockchain analytics firm Crebaco and a long-time advocate for crypto regulation in India, told CCN the situation is increasingly bleak.
“Countries like the U.S. are regulating left, right, and center—and Indians are left with frustration,” Sogani said. “It’s been over 10 years since I’ve been fighting for regulations. I submitted several documents and even visited the Parliament, but no luck. Finally, I gave up and moved my business overseas.”
His story echoes what many in the industry are now feeling: exhaustion, disappointment, and a slow but steady brain drain of crypto talent leaving India for more welcoming jurisdictions.
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