Exclusive: India’s Prime Minister Narendra Modi begins his third term in office, retaining Nirmala Sitharaman as Finance Minister, sparking mixed reactions in the country’s crypto community.
Sitharaman stressed the need for international cooperation in crypto policies, while also clarifying that cryptocurrencies cannot function as traditional currencies.
India took a positive step last year by prioritizing the creation of a crypto policy with global consensus during its presidency of the G20 nations. PM Modi also highlighted the necessity for a global framework on cryptocurrencies during the B20 Summit India in 2023.
Despite these efforts, India’s imposition of a 30% tax and 1% TDS on crypto gains has dampened hopes for a crypto-friendly environment.
However, Saravanan Pandian, CEO of KoinBX crypto exchange, sees potential for positive changes in India’s crypto policy in the near future. He believes that India’s willingness to engage with the growing importance of crypto assets is a step in the right direction.
CoinDCX, one of India’s major crypto exchanges, also remains optimistic. Co-Founder Sumit Gupta stated that a positive approach towards cryptocurrencies could level the playing field for domestic exchanges.
Indian crypto exchanges have been adapting to comply with the country’s anti-money laundering framework since March 2023. Several exchanges, including Binance, Kraken, and MEXC Global, have faced scrutiny for non-compliance.
To meet regulatory requirements, KoinBX has enhanced its KYC and AML procedures, implementing real-time sanction scanners and robust transaction monitoring systems. CoinDCX was the first exchange in India to register with the Financial Intelligence Unit – India and is a member of CyberSafe.
India’s high taxes on crypto transactions, including a 30% tax on profits and 1% TDS on all transactions, have led to a significant shift of users to offshore exchanges. The crypto industry has urged the government to reduce the 1% TDS to alleviate the burden on traders and exchanges.
The approval of Bitcoin and Ethereum spot ETFs by the US SEC has generated institutional interest in India. CoinDCX has seen a 2000% increase in deposits from customers and launched CoinDCX Prime to cater to institutional investors.
The exchange is also developing the $OKTO token to power the Okto Chain, offering incentives to early adopters. CoinDCX is committed to providing innovative tools and features to empower users and simplify the Web3 landscape.
