- India affirms crypto tax rules without Bitcoin ETF approval.
- Restrictive policy impacts India’s crypto market growth.
- Local exchanges face challenges amid tax regulations.
India’s government maintains its stance on cryptocurrency regulation by preserving existing tax rules and ruling out Bitcoin ETF approval, as confirmed by the Finance Ministry on July 29, 2025.
This policy reinforces India’s cautious approach to crypto, deterring institutional investment and causing market uncertainty.
India’s government confirms that crypto tax rules will remain unchanged through 2025, maintaining its cautious regulatory approach, alongside clarifying there are no plans to approve Bitcoin ETFs. This announcement emphasizes the country’s restrictive stance on cryptocurrency advancements.
The Ministry of Finance issued the statement, reinforcing previous tax regulations and ETF restrictions. Officials cite regulatory concerns, highlighting they aim to protect investors while maintaining financial system integrity. This decision aligns with India’s historical cautiousness regarding digital assets.
India’s crypto industry braces for sustained challenges with ongoing restrictive regulations. Market participants, including exchanges and investors, continue to face a subdued environment, impacting domestic market participation due to high taxes and lack of investment opportunities.
The 30% tax regime and 1% TDS on transactions dissuades institutional investment, prompting some exchanges to relocate operations overseas. This limits market liquidity and reduces local innovation, thus affecting India’s competitive positioning in the crypto market.
Globally, investors monitor India’s crypto policy closely, acknowledging its potential influence on broader market regulation. While immediate shifts in global crypto markets remain limited, the decision underlines India’s firm stance on conservative crypto governance.
India’s prolonged regulatory caution could hinder future tech developments within the country. However, a tweak in policy might spawn increased blockchain adoption and venture capital inflows. Observers emphasize that India’s tech potential remains immense but awaits policy liberalization.
No plans to revise crypto tax rules or permit Bitcoin/crypto ETFs,” as confirmed by the Ministry of Finance, Government of India on July 29, 2025
Notably, critics point out that “The 30% tax regime makes India less attractive for local/international crypto capital deployment.”
