Michaela
India is reconsidering its crypto policy in light of shifting global attitudes, particularly after U.S. President Donald Trump’s digital assets executive order, which has sparked regulatory discussions in several countries.
According to Reuters, India is reconsidering its crypto policy as global perspectives shift, with the government reviewing a discussion paper that was due for release in September 2024. The paper, aimed at addressing crypto regulation, was postponed last year due to other priorities.
Currently, the regulations only cover anti-money laundering and electronic fund transfers, rather than specific crypto-focused policies.
Ajay Seth, Economic Affairs Secretary, noted that digital assets transcend borders, emphasizing that India cannot make decisions one sided.
“More than one or two jurisdictions have changed their stance towards cryptocurrency in terms of the usage, their acceptance,” Ajay Seth noted. “In that stride, we are having a look at the discussion paper once again.”
A panel led by India’s Department of Economic Affairs Secretary is set to release a consultation paper on crypto regulations by March 2025, according to Business Today. The paper aims to gather feedback from stakeholders in order to shape a regulatory framework for virtual digital assets (VDAs).
Tightening Tax Laws
Despite this shift, the country appears to be tightening its crypto tax regulations. India’s crypto traders may face substantial fines for undeclared earnings due to recent updates in the nation’s tax laws.
In the Union Budget 2025, Finance Minister Nirmala Sitharaman announced that digital assets will fall under Section 158B of the Income Tax Act, which pertains to undisclosed income.
This amendment subjects unreported crypto profits to block assessments, aligning them with traditional assets such as money, jewelry, and precious metals.
The new tax regulations, effective retroactively from February 1, 2025, will also classify crypto as a Virtual Digital Asset (VDA), requiring disclosure in accordance with Section 285BAA of the Income Tax Act.
Read More
- India Moves to Ban Private Cryptos, Favors Central Bank Digital Currency
- Crypto Adoption in India Surges at Global Grassroots Level Despite Regulatory Hurdles
- India Maintains Top Position in Global Crypto Adoption
Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
