Indian Prime Minister Narendra Modi’s reappointment of Finance Minister Nirmala Sitharaman has drawn mixed reactions from the country’s crypto community, given her previous stance on digital assets and the government’s stringent tax policies.
Sitharaman has spoken about international cooperation on crypto policies but maintains that cryptocurrencies should not function as currencies. Despite prioritizing the creation of a global crypto policy during its G20 presidency last year, India imposed a hefty 30% tax and a 1% TDS on crypto gains, dampening hopes for a crypto-friendly environment.
Saravanan Pandian, founder and CEO of KoinBX crypto exchange, sees a chance for positive change. He cited India’s willingness to engage with crypto assets and emphasized the need for proper regulation and clarity. KoinBX is celebrating its 4th anniversary with over 1.5 million users and 120 crypto assets.
Sumit Gupta, co-founder of CoinDCX, also shared a positive outlook, believing that proper consideration of cryptocurrencies could level the playing field for domestic exchanges. CoinDCX has actively complied with anti-money laundering (AML) regulations and was the first to register with the Financial Intelligence Unit – India (FIU-IND).
However, India’s stringent crypto taxes have driven a large number of users to shift to offshore exchanges. A report by the Esya Centre revealed a $420 million potential revenue loss due to the 1% TDS. CoinDCX and Bharat Web3 Association are advocating for tax reductions, citing the negative impact on industry growth and innovation.
Despite regulatory hurdles, CoinDCX reported a 2,000% increase in deposits this year and launched CoinDCX Prime to attract institutional investors. They are also developing the Okto orchestration layer and $OKTO token to enhance their platform’s capabilities.
The Indian crypto market has one of the fastest-growing user bases in the web3 world. On May 22nd, India’s tech and crypto communities gathered to celebrate Bitcoin Pizza Day. This event, hosted by CoinEx, was not just about a single purchase, but a celebration of the creativity, community, and exciting possibilities that blockchain technology offers.
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