India’s Ministry of Finance Holds Firm: No Crypto Tax Relief or ETF Approval in Sight

• India’s Ministry of Finance confirms no changes to the 30% crypto tax or ETF approval.
• The decision contrasts with global trends, potentially driving talent overseas.
• India’s $6.4 billion crypto market growth may be at risk due to regulatory caution.

India’s Ministry of Finance has reaffirmed its stance, declaring no plans to revise the stringent 30% crypto tax rate or permit Bitcoin and crypto Exchange-Traded Funds (ETFs).

The announcement, highlighted by Crypto India on X, underscores a cautious approach by Finance Minister Nirmala Sitharaman, who has shaped eight consecutive budgets since 2019. This decision contrasts sharply with global trends, where the U.S. approved Bitcoin ETFs in 2024, signaling institutional adoption and driving Bitcoin past the $100,000 milestone.

The current tax framework, established in the 2022 Union Budget, classifies cryptocurrencies as “Virtual Digital Assets” (VDAs) and imposes a flat 30% tax on profits, alongside a 1% Transaction Digital Asset (TDA) tax on trades exceeding INR 10,000. This policy reflects India’s conservative stance amid a booming crypto market, with the country ranking third globally in adoption per the 2023 Chainalysis report, boasting $2.1 billion in transaction volume.

However, the lack of ETF approval and tax relief could push talent and capital overseas, as noted by X users like Blocks Star, who observed this trend within their network. Critics on the platform, including Nimesh and Dr. Maulik Modi, have labeled the decision as shortsighted, accusing the government of prioritizing revenue over innovation.

Globally, nations like Bhutan leverage crypto for economic growth, while India’s reluctance may hinder its $6.4 billion projected crypto market by 2025, per Statista. The International Monetary Fund’s 2022 Working Paper suggests regulated crypto could enhance financial inclusion, a benefit yet to materialize in India due to stringent controls. As the crypto landscape evolves, this decision might force Indian enthusiasts to seek opportunities abroad, potentially weakening the nation’s position in the blockchain race.

For now, the Ministry’s firm stance signals a wait-and-see approach, leaving the future of India’s crypto ecosystem uncertain.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.