According to a report by Reuters on Monday, the Indian government is reconsidering its position on cryptocurrency as the global perception of digital assets begins to change. Despite the lack of regulation, India introduced a 1% tax deducted at source and a 30% capital gains tax on crypto transactions in 2022. Since then, the crypto industry has been urging the government to relax taxation and provide policy clarity to foster growth in the sector.
The Indian government's decision to review its stance comes amid renewed hopes for widespread crypto adoption in the US, driven by Donald Trump's supportive stance on cryptocurrency. India's Economic Affairs Secretary, Ajay Seth, stated in an interview with Reuters, "Several jurisdictions have altered their stance on cryptocurrency, recognizing its importance and acceptance. In line with this shift, we are reexamining the discussion paper on crypto." The discussion paper, which was put on hold last year due to other priorities, is now being revisited.