The crypto industry in India has spotted its chance to lobby for more favorable treatment from New Delhi, according to a Financial Times report on Tuesday.
Crypto exchange executives said Prime Minister Narendra Modi’s government’s has become more receptive towards digital assets and has engaged in discussions since Donald Trump’s return to the White House, the FT reported.
“Thanks to Trump, the positive momentum that has happened in crypto has impacted India as well,” CoinSwitch co-founder Ashish Singhal said, according to the report.
The industry’s big ask is a reduction in the “very harshly” imposed taxes, Singhal added.
In India, crypto transactions are currently subject to a 30% capital gains tax and a 1% levy on every transaction out of concern from authorities that digital assets are being used for criminal purposes.
The Reserve Bank of India (RBI) has also been a vocal crypto critic, even banning banks from providing services to crypto companies in 2018. Though this was set aside by the Supreme Court in 2020.
Current RBI governor Sanjay Malhotra has avoided directly criticizing cryptocurrency, with Singhal saying its relationship with the central bank going “negative to neutral.”
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