India appears to be reconsidering its approach to cryptocurrency regulations, prompting renewed interest from global crypto service providers looking to re-enter the market.
Ajay Seth, Secretary of India’s Department of Economic Affairs, has indicated that the government is reassessing its stance on crypto regulations. Speaking at the 2025 Budget Roundtable event, Seth revealed that while India had initially planned to release a consultation paper following its G20 presidency in 2023, recent global shifts—including the pro-crypto stance of U.S. President Donald Trump—have necessitated a recalibration of its policies.
India’s stringent tax regime, which includes a 30% tax on crypto income and a 1% tax deducted at source (TDS), has significantly impacted the local crypto industry since its implementation in 2022. Trading volumes on Indian exchanges plummeted, leading to the exit of several key players. WazirX, once India’s largest crypto trading platform, saw a 90% drop in business, pushing it to relocate part of its operations to Dubai.
However, as India signals a potential policy shift, major crypto firms are making moves to re-enter the market, according to Bloomberg. Coinbase registered with India’s Financial Intelligence Unit on March 11 to launch its retail trading platform. This follows similar registrations by Binance, Bybit, and KuCoin, suggesting a growing optimism about India’s evolving regulatory landscape.
India’s reconsideration aligns with a broader global trend toward more favourable crypto regulations. Countries such as Hong Kong, Australia, and the United Arab Emirates (UAE) have recently introduced new frameworks to attract digital asset firms.
Hong Kong, in February, introduced regulatory measures for tokenization and virtual asset exposure in authorized funds while approving exchange-traded funds (ETFs) investing in digital currencies. Australia followed in March with a comprehensive four-pronged approach, setting governance standards, licensing requirements for service providers, custody regulations, and stablecoin capital requirements. Meanwhile, the Dubai Financial Services Authority and the Abu Dhabi Global Market have also introduced regulatory frameworks designed to attract crypto firms.
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