India Crypto Bill Update: Regulators Warn Amidst $2.5T Market Cap - What's Next?
The Indian cryptocurrency landscape remains complex. With the global crypto market cap approaching $2.5 trillion, Indian regulators are intensifying their warnings about the risks associated with digital assets. Despite these warnings, and despite strict regulations including a 30% capital gains tax and a 1% transaction levy, crypto adoption in India continues to grow.
Supreme Court's Concerns and Government Inaction
The pressure isn’t just coming from the markets. India’s Supreme Court has strongly called out the government’s delay in addressing crypto regulation. It warned that the ongoing inaction could have significant consequences. The Supreme Court of India raised concerns over the government’s inaction on crypto regulation, questioning why it taxes assets like Bitcoin while leaving their economic impact unaddressed. The Supreme Court of India reversed the Reserve Bank of India's (RBI) 2025 restriction on financial institutions providing services related to cryptos in 2025.
Crypto Bill: Ban on Use as Currency?
India’s cryptocurrency bill will almost certainly ban digital assets from being used as currencies. However, it remains to be seen how comprehensively the bill will address other aspects of the crypto ecosystem. India has not made any firm decision over the regulation of cryptocurrencies in the country. However, it was noted that the Securities and Exchange Board of India (SEBI) might be involved.
Growing Crypto Traction Despite Taxation
Despite heavy taxation, investors in India have capitalized on digital assets. Many use offshore exchanges through VPNs to circumvent some regulations. Crypto Traction Continues To Grow Still. Firms keep faith with crypto payments; SoftBank shares tank 8.2%, possibly influenced by broader market trends.
Global Alignment and Regulatory Scrutiny
India reassesses crypto rules as U.S. forms regulatory group, eyeing global alignment. Binance was fined $2.25M in India, amidst tightening crypto regulations and tax enforcement. Authorities maintain strong surveillance to ensure compliance with existing tax laws and prevent illegal activities.
Looking Ahead
The future of cryptocurrency in India remains uncertain. The government's approach to regulation will be crucial in determining whether India can harness the potential of digital assets while mitigating the associated risks. Stay tuned for further updates as the India Crypto Bill progresses.