India Prepares Crypto Policy Paper Amid Global Shifts
India is set to release a comprehensive discussion paper on digital assets this June, incorporating insights from global bodies like the IMF and the Financial Stability Board. This move aligns with rising international interest in cryptocurrency, especially following the United States’ more favorable outlook under President Donald Trump’s leadership.
CoinDCX Welcomes Regulatory Consultation
Sumit Gupta, co-founder of CoinDCX, India’s first crypto unicorn, confirmed the paper’s imminent release, noting that it aims to outline sector risks and invite public feedback. “My sense is that it will cover the key risks associated with the sector and seek public comments… but no commitment on regulation yet,” Gupta said.
Supreme Court Demands Urgent Action
The Supreme Court of India recently criticized the federal government for delaying crypto regulations, warning that the lack of oversight has enabled financial abuses. During a bail hearing in a crypto fraud case, Justices Surya Kant and N. Kotiswar Singh emphasized the danger of treating digital assets like informal “hawala” transfers in the absence of a legal framework.
Government Faces Pressure From Past Promises
The court reminded the government that it had already called for a clear digital currency policy nearly two years ago. While rejecting the idea of a complete ban, the bench highlighted the pressing need for a structured regulatory framework to prevent misuse and ensure lawful implementation.
RBI Reiterates Crypto Risks to Financial Stability
India’s central bank maintains its cautious stance, warning that digital currencies could threaten financial and monetary stability. “Of course… we are concerned about crypto because that can hamper financial stability and monetary policy,” said RBI Governor Sanjay Malhotra during a press conference on June 6.
Harsh Taxes but No Ban
Rather than imposing a total ban, India has enforced one of the world’s toughest crypto tax regimes—30% flat tax on profits without loss offsets and a 1% TDS on transactions over Rs 10,000 ($116). According to Esya Centre, this policy could drive a $1.2 trillion reduction in trading volume on Indian exchanges.
CoinDCX Expands with BSV Token Listing
In July 2024, CoinDCX began listing the BSV token, offering users more trading options and signaling broader market adoption in India. With a user base of roughly 15 million, this development underscores growing domestic interest in crypto assets and CoinDCX’s strategic role in the country’s evolving digital economy.
Global Shifts Delayed India’s Earlier Plans
According to Ajay Seth of the Department of Economic Affairs, the crypto paper was delayed earlier this year due to changing global regulatory trends, particularly involving stablecoins and international payment systems. The delay reflects India’s intent to align with a coordinated international approach before finalizing domestic policy.
RBI Cuts Rates to Revive Economy
In a surprising move, the RBI slashed interest rates by 50 basis points to 5.5% and lowered the cash reserve ratio, aiming to inject liquidity and counteract slowing growth. The central bank held its growth forecast at 6.5% while lowering inflation expectations to 3.7%, though it warned that further rate cuts may be limited.
Lower Rates Could Boost Crypto Investment
Sumit Gupta of CoinDCX noted that reduced interest rates might make traditional savings less attractive, pushing investors toward alternative assets like crypto. “We are witnessing increased interest from both retail and institutional investors who view crypto as a strategic asset within a well-balanced portfolio,” Gupta said.
