Budget 2025 for crypto: As the Indian crypto sector continues to evolve, industry leaders are setting their expectations high for the Union Budget 2025. With rapid advancements in blockchain technology and virtual digital assets (VDAs), the sector sees an opportunity for India to position itself as a global leader in Web3 and decentralized finance.
Crypto stakeholders are advocating for balanced regulatory policies, tax reforms, and investment in blockchain infrastructure to foster growth and innovation. As other nations move towards integrating digital assets into mainstream finance, India’s approach to the upcoming budget will be crucial in determining the future of the industry within the country.
Need for a Balanced Regulatory Framework
Vishal Sacheendran, Head of Regional Markets at Binance, emphasized the importance of a forward-thinking regulatory framework to unlock the full potential of VDAs in India. He highlighted the need for policies that promote transparency, protect investors, and encourage innovation.
Additionally, he called for collaboration between policymakers and industry leaders to ensure that regulations remain adaptable to the fast-evolving nature of digital assets. With the right policies, India has the opportunity to establish itself as a global hub for Web3 and blockchain adoption, attracting both investment and talent.
Revisiting Tax Policies for Crypto Growth
Calling for a reduction in the 30 per cent tax on crypto gains and a decrease in the 1 per cent TDS on transactions to a nominal 0.01 per cent, Vikram Subburaj, CEO of Giottus noted that such measures would improve market liquidity and boost participation from both retail and institutional investors.
Additionally, he stressed the importance of allowing gains and losses to be offset for tax purposes, aligning with global best practices. Beyond taxation, he urged the government to support blockchain R&D through grants and public-private partnerships to strengthen India’s Web3 ecosystem.
Addressing TDS and Market Transparency
Ashish Singhal, Co-founder of CoinSwitch, highlighted the need to refine tax policies to encourage growth while ensuring compliance. He proposed reducing the TDS on VDA transactions from 1 per cent to 0.01 per cent and raising the applicability threshold from Rs 10,000/50,000 to Rs 5 lakh.
These changes, he argued, would alleviate tax burdens on small investors and improve market transparency. Additionally, he called for aligning the taxation of crypto assets with other asset classes and permitting loss offsetting, fostering a more equitable environment for investors and traders.
Formal Recognition and Institutional Participation
Stressing on the importance of aligning India’s crypto policies with global standards, Raj Karkara, COO of ZebPay advocated for the recognition of crypto as a formal asset class with clear classifications and simplified tax structures.
Additionally, he emphasized the need for policies that incentivize innovation, such as tax breaks for blockchain and Web3 startups. By implementing clear guidelines on security, compliance, and custody, he noted that India could unlock institutional participation and drive the industry’s long-term growth.