“Indian Crypto Platforms Push for Tax Reform Ahead of Union Budget: Will Changes Boost Liquidity and Compliance?”

📰 DMK AI Summary

Indian crypto platforms are urging tax reform ahead of the February Union Budget, criticizing the existing tax framework for hindering onshore activity. The current system imposes a 30% tax on crypto gains and a 1% tax deducted at source on transactions, regardless of profitability. Industry leaders argue that these taxes and loss restrictions are outdated and impede liquidity as India strengthens crypto compliance.

💬 DMK Insight

The renewed calls for tax reform in India’s crypto industry highlight the need for a more balanced regulatory approach that promotes innovation while ensuring compliance. By revisiting transaction-level taxes and allowing for loss set-offs, exchanges believe onshore liquidity and compliance could be improved. As India finalizes its fiscal priorities for the upcoming financial year, the Union Budget presents a crucial opportunity to recalibrate the crypto tax framework and address industry concerns.

📊 Market Content

The push for tax reform in India’s crypto sector reflects broader trends of regulatory scrutiny and compliance efforts in the global digital asset market. As countries worldwide navigate the evolving landscape of crypto regulations, the outcome of India’s budget decisions could signal important shifts in how jurisdictions approach taxation and oversight within the cryptocurrency industry. Traders and investors will be closely monitoring these developments for potential impacts on market dynamics and investment strategies.