India, which has been critical of extremely criticizing and encrypting in the past, is now re -evaluating its position on assets.
The Indian government believes that, since other countries, including the United States, have changed its perception of digital origins, they should not be left behind; Therefore, you will review its regulations.
Indian Minister of Economic Affairs Ajay Seth He said:
More than one or two judicial states changed their position towards the cryptocurrency in terms of use and acceptance. In that step, take a look at the discussion sheet again.
Ajay Seth
India rethinks its location on the assets of encryption, given the transformation in the United States
The Indian government has imposed heavy taxes and strict rules on digital assets due to its concerns about its multiple risks.
For beginners, encryption traders in India still pay a 30 % capital profit tax, regardless of whether their profits are from a long -term or short -term investment.
Moreover, in December 2023, the country’s financial intelligence unit (FIU) cracked many encryption trading platforms abroad, accusing them of failing to comply with its systems. In June 2024, Binance was also forced to pay 188.2 million rupees, or about $ 2.25 million, after registering with the agency.
Even Amit Kumar Gupta, the legal practitioner of the Supreme Court of India, believed that the Indian government was very strict when creating encryption regulations, describing the rules as “Drakoni”. He added that he believed that the government not only sees digital assets as a means of money laundering and terrorist financing, and not necessarily for anything good.
However, with increasingly accepting digital countries, India appears to be under pressure to join them. President Donald Trump has already directed the creation of a working group to draft encryption policies and the appropriate framework. El Salvador continues to build BTC reserves, while countries such as Canada and Australia have maintained a fairly friendly position with digital assets.
Ajay Seth commented in India how digital assets occur, which suggests that the country may not want to miss any potential opportunities in the virtual asset space.
The Indian government has presented new policies for encryption principles
In the last financial amendment of 2025, which came into effect on February 1, 2025, the Indian government included digital assets under Article 158 B of the Income Tax Law under virtual digital assets (VDAS).
According to the new amendment, encryption profits will receive the same tax transaction as traditional assets as money and jewelry. Crypting holders will also face a 70 % penalty on gains that have not been previously revealed until four years after the year of tax evaluation.
The government saw this tax law necessary, especially after finding more than 824 Indian rupees, equivalent to 97 million dollars of goods and unpaid service services (GST) by many encrypted exchanges in December 2024 and about 722 Indian rupees in Unpaid taxes from Binance in August. .
Wazirx, CoINDCX and Coinswitch Kuber exchanges are particularly subject to scrutiny due to unpaid taxes.
India’s change in the imposition of a somewhat similar encryption tax is similar to internal revenue users, which requires exchanges to detect their digital asset transactions. However, some, such as the Blockchain Association, says that the requirements of the Tax Authority are paid to decentralized exchanges.
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