According to a report by the Financial Times, the Indian crypto industry has sensed a chance to advocate for better treatment by the government. Executives from cryptocurrency exchanges noted that the administration of Prime Minister Narendra Modi has become more open to digital assets, engaging in discussions following recent developments.
A key figure in the industry attributed the positive trend in crypto to recent global events, stating that the momentum has also affected India. The main request from the industry is a reduction in the currently imposed taxes, which are considered overly stringent. Presently, crypto transactions in India are subject to a 30% tax on capital gains and an additional 1% levy on each transaction, largely due to concerns over the potential use of digital assets for illicit activities.
Although the Reserve Bank of India has historically been skeptical of cryptocurrencies, even banning banks from servicing crypto companies in 2018, this decision was later overturned by the Supreme Court in 2020. The current governor of the RBI has adopted a more neutral stance, with industry leaders noting a shift from negative to neutral in their relationship with the central bank.