The cryptocurrency market in India has faced challenges due to strict tax policies, leading to concerns about the country's standing in the global digital economy. The government introduced a 1% Tax Deducted at Source (TDS) on crypto transactions exceeding ₹10,000 and a 30% capital gains tax on crypto profits in 2022. These measures have led to a significant decline in trading activity and the loss of India's once-thriving digital asset ecosystem. While government officials argue that the policies are necessary for regulation and oversight, industry experts argue that they have penalized traders and alienated them from the market. In contrast, China has taken a different approach by investing in blockchain and implementing a capital gains tax structure for cryptocurrencies, which traders consider to be more business-friendly. The question now arises whether India is positioning itself as a global leader in digital assets or inhibiting its own potential.



Other News from Today