Tag:

India

CBDT Contemplates If India Needs New Virtual Digital Assets Law

by admin August 18, 2025

India’s top tax authority, the Central Board of Direct Taxes (CBDT), has begun extensive consultations with cryptocurrency exchanges and industry participants to assess if a new digital asset law is needed.

As per a report from the Economic Times, the CBDT has asked crypto players if India requires a fresh law for Virtual Digital Assets (VDAs). And if a new law is needed, the CBDT also wants to know which regulator should oversee it. Options include SEBI, RBI, MeitY, or FIU-IND.

The agency is also probing how much Indian crypto trading has moved offshore, particularly to hubs like Dubai. It also wants to understand why traders are leaving India. The initiative indicates that the government might be rethinking its stringent approach to taxing and regulating cryptos.

India Crypto Tax Concerns

At present, crypto gains face a steep 30% flat tax with no loss set-off, plus a 1% TDS on every trade. Industry players say this has crippled liquidity and pushed volumes abroad. The Indian government admitted it currently lacks a real-time system to track income from cryptocurrency transactions, even after collecting over ₹700 crore in taxes in two years.

CBDT is now asking whether this 1% TDS is too high, and what the ideal rate should be. Further, the agency is deliberating whether disparate TDS norms should be adopted for retail traders, institutions, and market makers.

The survey also addresses operational concerns, such as checking counterparties’ domicile, correctly valuing VDAs, and dealing with peer-to-peer transactions. CBDT has also asked whether Indian exchanges are ready to comply with the OECD’s global crypto reporting framework (CARF), designed to prevent tax evasion across borders.

Expert Opinions and Outlook

Interestingly, some Indian exchanges have started offering futures and options trading, where TDS is lower, but there’s still no legal clarity on derivatives, offshore transactions, or even the precise definition of “VDA.”

Purushottam Anand, Founder of crypto law firm Crypto Legal, said India will likely bring in a complete VDA regulation. He also stated that the government is doing a thorough examination of VDAs this year, based on global issues such as G20 papers and recent legislative studies. Anand stressed that India feels that any rule or ban will be most effective when implemented with strong international collaboration.

Experts believe this consultation could be the first step toward a comprehensive VDA law. According to legal experts, global consensus today is moving towards regulation, not bans. With advanced markets embracing crypto as a legitimate asset class, there’s hope that India may ease taxes and set clearer rules to retain traders.

Also Read: AKTU Becomes 1st Indian Uni to Use Blockchain for 50K Degrees

Source link

August 18, 2025 0 comments

GameFi Guides

Indian Ruling Party Spokesperson Urges Bitcoin Reserve for India

by admin June 26, 2025

Indian ruling party Bhartiya Janata Party (BJP) national spokesperson Pradeep Bhandari has urged the Centre to think seriously about building a Strategic Bitcoin Reserve, arguing that the global mood on digital assets has changed for good.

His call lands just as Washington locks Bitcoin into its balance sheet and tiny Bhutan quietly turns hydro-power into a billion-dollar crypto hoard.

“This isn’t a reckless pivot, it’s a calculated step toward embracing digital assets’ legitimacy,” Bhandari insists.

The American template

In January, the United States transformed roughly 200,000 seized Bitcoins—now worth more than $20 billion—into a sovereign buffer against inflation and market shocks. Plans announced at last month’s White House Crypto Summit go further: boosting the reserve through budget-neutral tactics that keep taxpayers off the hook.

Three states already allow treasuries to hold Bitcoin; several more are drafting similar bills. Bhandari sees the move as a loud geopolitical signal: When the world’s largest economy puts Bitcoin on its books, everyone else takes notice.

Bhutan’s hydro-powered play

Closer home, Bhutan has mined Bitcoin since 2021 using surplus hydropower, amassing a war chest now topping $1 billion. What began as a lifeline after tourism collapsed in the pandemic now bankrolls public services and green projects.

Bhandari argues that India, with far bigger renewable capacity, could adapt the model at scale. The resources are here, he says. “India’s crypto policy—taxed but unregulated—needs clarity to unlock potential.”

Why Bitcoin has an edge

Bitcoin differs fundamentally from both fiat money and gold. Its code caps supply at 21 million coins—an engineered scarcity that many see as a reliable store of value. It answers to no central bank and runs on a decentralised network, so no single authority can rewrite the rules.

Trading never stops: the asset moves across borders every hour of every day. Each transaction lives forever on a transparent, tamper-resistant blockchain.

Also Read: India’s Crypto Dilemma: Can growing Institutional Adoption Enable Regulatory Clarity?

Source link

June 26, 2025 0 comments

India crypto rules still in limbo as RBI says ‘no thanks’

GameFi Guides

India cracks down on crypto tax evasion in enforcement push

by admin June 13, 2025

India’s Income Tax Department has launched a fresh crackdown on potential tax evasion and money laundering tied to virtual digital assets, including cryptocurrencies.

According to government officials and local reporting, the department has identified individuals and entities engaging in crypto transactions who failed to comply with the Income Tax Act, 1961.

The Central Board of Direct Taxes recently sent emails to thousands of individuals, urging them to review and update their income tax returns if crypto income was misreported or omitted. The initiative is part of CBDT’s broader NUDGE campaign, aimed at encouraging voluntary compliance.

This marks the third NUDGE campaign in six months, following earlier drives that focused on foreign asset disclosures and false political donation deductions.

Although India does not recognize cryptocurrencies as legal tender, income from VDA transfers has been taxable since April 2022. Under Section 115BBH of the Income Tax Act, crypto income is taxed at a flat 30% without deductions, except for the cost of acquisition.

Losses cannot be offset or carried forward.

India’s mismatching tax documents

Officials say discrepancies are being uncovered through data analytics, including mismatches between income tax returns and tax deducted at source filings by crypto exchanges, or Virtual Asset Service Providers.

Some taxpayers reportedly failed to file the mandatory Schedule VDA or declared crypto income at lower tax rates, while others wrongly claimed deductions.

The crackdown comes amid broader concerns over the use of unaccounted income in high-risk crypto investments. While the government is working on a discussion paper to explore regulatory options for VDAs, including a possible ban, it has clarified that taxation does not imply formal approval of cryptocurrencies.

Source link

June 13, 2025 0 comments

GameFi Guides

India CBI Busts Transnational Cybercrime Ring, Seizes $327K in Crypto

by admin June 11, 2025

In brief

The CBI arrested Rahul Arora in Delhi and seized $327,000 (₹2.8 crore) in crypto and $26,400 (₹22 lakh) in cash.
Officials recovered caller ID spoofing tools, social engineering software, and voice recordings, exposing a network exploiting cross-border enforcement gaps.
A Web3 lawyer told Decrypt the use of crypto in this case doesn’t make it a “cryptocurrency scam.”

India’s Central Bureau of Investigation has arrested a Delhi man and seized over $327,000 (₹2.8 crore) worth of crypto after busting a transnational cybercrime operation that targeted victims in the United States and Canada.

Rahul Arora was arrested in New Delhi during coordinated raids at three locations across India on Tuesday, with investigators uncovering sophisticated tools used to impersonate government officials and tech support representatives to defraud overseas victims.

“Acting on actionable intelligence developed during the investigation, CBI conducted these searches and uncovered incriminating evidence busting the operation of a group engaged in transnational cyber fraud,” the CBI said in a press release issued Wednesday.

CBI Busts Transnational Cybercrime Racket

Recovers Crypto currencies worth Rs. 2.8 Crore

One accused arrested pic.twitter.com/4L8OolOwAo

— Central Bureau of Investigation (India) (@CBIHeadquarters) June 11, 2025

The bust points to how India-based cybercrime syndicates exploit jurisdictional gaps to target foreign nationals, prompting increased international law enforcement cooperation amid growing cross-border digital crime challenges.

The bureau has seized international calling devices, caller ID spoofing software, lead generation tools based on social engineering tactics, and voice recordings alongside the crypto haul. The agency also recovered $26,400 (₹22 lakh) in unaccounted cash.

Chakra-V is a multi-agency campaign to combat cybercrime. It involves state cyber cells, the Indian Cyber Crime Coordination Centre (I4C), and international partners, including Interpol and the FBI.

The initiative focuses on digital forensics, virtual digital asset seizures, and tracking dark web activities.

“The agency has also put in place necessary systems for the management of such assets [crypto] as per legal provisions,” officials said.

Arora has been produced before a Special CBI Court as investigations continue.

“I hope this isn’t understood to be another ‘cryptocurrency’ scam by the general public and the government,” Subha Chugh, a Web3 lawyer, told Decrypt. “Just because the alleged criminal parked funds in cryptocurrency doesn’t mean the scam involved cryptocurrency or was possible through cryptocurrency. If the perpetrator had purchased land, would we be calling it a real estate scam?”

Chung noted authorities should be “well-versed in how to handle virtual assets” and “actively work with industry stakeholders to ensure specialists are involved in cases like these.”

“CBI has developed in-house capabilities for handling and seizure of Virtual Digital Assets (VDAs) as part of its technology-driven approach for combating cybercrime,” the press release said.

“The proper storage and handling of assets that lack a legal categorisation at the present moment is undoubtedly tricky,” the expert said regarding the claimed capabilities.

Arora’s arrest shows the CBI’s expanding international cybercrime capabilities, built through high-profile cases including the ongoing $800 million (₹6,600 crore) GainBitcoin Ponzi scheme investigation.

In February, CBI conducted raids across 60 locations in the GainBitcoin case, leading to the seizure of crypto worth $2.9 million (₹23.94 crore).

Edited by Stacy Elliott.

Daily Debrief Newsletter

Start every day with the top news stories right now, plus original features, a podcast, videos and more.

Source link

June 11, 2025 0 comments

GameFi Guides

India crypto rules still in limbo as RBI says ‘no thanks’

by admin June 8, 2025

Despite mounting pressure for regulatory clarity, the Reserve Bank of India remains firmly opposed to cryptocurrencies, citing risks to monetary policy and financial stability.

RBI Governor Sanjay Malhotra reaffirmed the central bank’s stance even as a government committee reviews policy options and the Supreme Court presses for clearer guidelines. The tension highlights India’s ongoing regulatory deadlock, where legal, judicial, and financial forces continue to clash over the future of digital assets.

Malhotra underlined during a news conference following the announcement that the RBI is still concerned about the possible threats that cryptocurrencies could pose to monetary policy and financial stability.

“RBI has maintained a consistent stance on this issue. A [government] committee is currently examining the matter. We remain concerned about the potential risks crypto poses to financial stability and monetary policy,” Malhotra said.

The comments come as a government committee continues examining cryptocurrency regulation. India is also expected to release a comprehensive policy discussion paper in June 2025 following mounting pressure from the Supreme Court for regulatory clarity.

India’s Supreme Court pushes for comprehensive regulation

In recent proceedings, the Supreme Court has questioned the government’s delay in establishing clear cryptocurrency policies. The justices also noted the absence of proper regulatory frameworks has created confusion in the digital asset space.

Given the advancements in the global financial system, a Supreme Court bench led by Justices Surya Kant and N Kotiswar Singh stated that prohibiting cryptocurrencies is not feasible.

The country has maintained an ambiguous stance since the Supreme Court overturned RBI’s 2018 banking ban on cryptocurrency transactions in March 2020.

India’s cryptocurrency regulation saga began in 2018 when RBI issued a circular prohibiting banks and financial institutions from providing services to cryptocurrency businesses.

The prohibition was later struck down by the Supreme Court in March 2020. The court ruled that the banking ban was disproportionate and violated constitutional rights under Article 19(1)(g) of the Indian Constitution.

Following the court ruling, RBI instructed banks not to block cryptocurrency transactions based on the invalidated circular. This provided a temporary relief to the crypto industry.

RBI’s persistent opposition to private cryptocurrencies

Despite legal setbacks, RBI Governor Shaktikanta Das has consistently characterized cryptocurrencies as posing “huge risks to financial stability” and called them a “clear danger” to the economic system.

Previous statements from Das suggested that all cryptocurrencies should be banned due to their potential to undermine India’s financial and macroeconomic stability.

The central bank has remained firm in its belief that crypto could undermine India’s financial stability. It has also cited concerns about its use in money laundering and its potential impact on monetary policy effectiveness.

In 2022, India announced a 30% tax on crypto gains and a 1% TDS on cryptocurrency transactions. This remains one of the world’s highest cryptocurrency tax regimes.

Source link

June 8, 2025 0 comments

Crypto Trends

India and Pakistan in Crypto Adoption War: Who Stands Where?

by admin June 3, 2025

India and Pakistan not just share their boundaries, but they also share one of the most notable enmities since the partition in 1947. Whether it is cricket, culture, or full-fledged wars, everyone has witnessed their rivalries.

Now, both rival countries are competing for crypto adoption. Recently, Pakistan dropped a bombshell by announcing its intention to establish a strategic crypto reserve. Not only that, but the country also plans to allocate 2,000 MW of electricity for bitcoin mining. Just after this, India reportedly plans to publish the Crypto Regulation Discussion paper in June 2025.

Both countries are taking steps to escalate the crypto ecosystem. The steps may differ, but it marks the beginning of a crypto adoption war between India and Pakistan.

Pakistan Moves Boldly into Crypto While India Lacks Traction

The story began when the Crypto Council head from Pakistan, Bilal Bin Saqib, took everyone by surprise when he made an announcement at the Bitcoin 2025 conference in Las Vegas. Pakistan is not just testing crypto—it is fully committing by establishing the Strategic Bitcoin Reserve with support from the government.

Things get more interesting here: Pakistan formed its own reserve only three months after the United States did the same. For years, India has said it will release a crypto discussion paper, and the latest date promised is “June 2025,” which keeps getting closer but never arrives.

It’s almost like poetry how ironic it all is. Pakistan, which was once considered behind in technology, is now working to become a leader in digital innovation. Saqib was direct in saying that Pakistan is being “reborn” and is now “powered by its youth, made stronger by need, and led by a new generation of leaders in technology.” Those are fighting words in the world of national digital strategies.

But here’s the surprising part: Pakistan currently has over 40 million crypto wallets and says it is one of the biggest freelancer economies in the world. While India puts up new rules and raises taxes on cryptocurrencies, Pakistan is quietly growing its crypto infrastructure. They are using 2,000 megawatts of extra electricity for both Bitcoin mining and AI data centers. That is not only planning; it is also carrying out the plan.

Why India Needs Immediate Action on Crypto Regulatory Framework

Right now, India’s crypto situation feels like watching a Bollywood drama at a very slow pace—there’s a lot of suspense, but the ending never arrives. For years, the country has been unable to pass new laws, which has led to confusion, heavy taxes, and missed chances.

The 30% crypto tax in India has already driven a lot of traders and investors out of the country to look for other countries with better tax laws. Indian youth, who play a large role in the crypto world, are seeing Pakistan give its support to crypto while they continue to face uncertainty in their own country. It’s similar to getting invited to a party, but your parents always warn you they’ll ground you if you attend.

Where India Currently Stands

India is facing this crisis at a very bad time. Sumit Gupta from CoinDCX recently shared that the Financial Stability Board is currently conducting a review of how countries regulate cryptocurrencies, and the report will be released in October 2025. India may not keep up with global crypto policies, while Pakistan follows international guidelines.

The big problem that no one is talking about? Pakistan’s strategy is not being carried out alone. Because US President Donald Trump is pro-crypto, Pakistan is now joining a larger group of countries that support cryptocurrencies. India, at the same time, keeps treating crypto as the family member you’re not sure you want to invite to get-togethers.

By hesitating, India is missing the opportunity to become the Web3 capital of the world, which Pakistan is now trying to achieve. Since India has a large number of tech experts and is entrepreneurial, this should have been an obvious choice. On the other hand, the lack of clear rules is pushing companies to develop and invest in other countries.

Final Thoughts

The battle between India and Pakistan over crypto adoption is more about securing a leading role in the future economy than just using digital currencies. The difference between Pakistan’s quick action on crypto and India’s slow progress is not only about policies; it points to a basic change in how the countries approach new ideas, innovation, and risks.

India stands at a very important turning point. It can either realize that crypto is here to stay and should be regulated, or it can see its neighbor take the regional crypto crown. The decision is obvious, but time is running out. Being slow in the world of cryptocurrency can be extremely harmful.

The war has begun. The question is, which side will India choose to be on?

Also read: Bitcoin Adoption Race: How the U.S. is Dominating and Who Are Close Behind?

Source link

June 3, 2025 0 comments

Crypto Trends

India Can Lead the Web3 Wave With Clear Rules: Sumit Gupta

by admin June 2, 2025

Sumit Gupta, the founder of CoinDCX, a cryptocurrency trading platform, has shared his thoughts about how India has a fantastic chance to become a leader in Web3, which is the next big step for the internet, focusing on technologies like blockchain and cryptocurrencies.

In his recent post on X, the CoinDCX founder stated that India can lead in Web3. Some X users concur with him, stating that India could lose its opportunity to lead in Web3 if the government doesn’t move swiftly, and they don’t want India to lag behind.

India has the users, the talent, and the opportunity. What’s missing is regulatory clarity. If that is addressed, we can lead the global Web3 wave!

Recently spoke to @FortuneIndia to share thoughts on how India risks losing the next internet revolution to global rivals, unless…

— Sumit Gupta (CoinDCX) (@smtgpt) June 2, 2025

Gupta said India has everything it needs to make the country successful in Web3. He stated that India has many people interested in these technologies, with skilled workers and many possibilities for growth. He has also emphasized the problem the country faces.

According to Gupta, India does not have clear rules for Web3 and cryptocurrencies yet. He warns that without these rules, other countries might take the lead, and India could miss out on this important opportunity.

He also mentioned that he gave an interview to Fortune India, where he explained these ideas in more detail. Gupta is pushing for the government to create clear regulations quickly so India can stay ahead in this new internet revolution and not fall behind other countries.

Although many were frustrated, pointing out problems like the high tax on crypto trades, which makes trading expensive, and the lack of enough buyers and sellers in the Crypto-INR market, making it hard to trade easily. The users feel that these issues are already holding India back compared to other countries.

Gupta’s message highlights CoinDCX’s big goal. He wants to make cryptocurrencies as normal and popular as stocks in India. His words also highlight that India is at a decisive moment. He believes the country needs clear and fair rules for crypto to grow while also keeping in mind that it should be safe while encouraging new ideas and making sure talented people stay in India to work on Web3.

Also Read: U.S. Embraces Bitcoin – India Must Lean In: CoinDCX CEO

Source link

June 2, 2025 0 comments

GameFi Guides

India Makes Major Crypto U-Turn

by admin May 27, 2025

According to the Financial Times, the Indian government has warmed up to crypto, following the example of the U.S.

The government is now reportedly holding frequent meetings with local crypto industry leaders in a major reversal.

The Indian crypto industry is trying to take advantage of this dramatic change by lobbying for tax cuts.