30s Summary

Despite a 30% tax on profits and a 1% tax taken from the source, India’s crypto use is still booming according a report by Chainalysis. Raj Karkara, COO of ZebPay, and Ajay Kashyap, a crypto influencer, assert that India’s younger, tech-savvy generation is driving the market, with Kashyap estimating at least 100 million Indians own crypto. While India’s Financial Intelligence Unit endorsed major crypto platforms in May, local exchange leaders believe a clear regulatory framework and more flexible tax policies are needed for the country’s crypto ecosystem to reach its full potential.

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Crypto use in India is booming, even though the government has slapped on some pretty off-putting taxes on crypto trading. This isn’t slowing down Indian fans of crypto at all.

India is actually the world’s biggest economy when it comes to crypto use, Chainalysis says. In its 2022 Union Budget, the country introduced a 30% tax on profits from crypto and a 1% tax taken from the source. But, even a year after these taxes were introduced, in April 2022, India’s crypto scene has kept its momentum going and is not letting the hefty tax requirements get in the way, according to those who watch the market closely.

Raj Karkara, the COO of Indian-born crypto exchange ZebPay, acknowledges that the current tax structure can eat into profits and put off frequent trading. But he says that despite this, India’s crypto scene hasn’t stopped growing, with various exchanges making transactions smooth and easy for users.

India, in Karkara’s words, is one of “the most vibrant markets for crypto.” Youthful, tech-knowing and interested in blockchain solutions – that’s what’s driving the Indian crypto market. So, how popular is crypto in India, you might ask? Ajay Kashyap, an Indian crypto influencer on YouTube believes that at least 100 million Indians are in possession of crypto.

India, it seems, is a fruitful land for crypto. With plentiful smartphones, cheap internet, and an interest in blockchain tech especially among the younger generations, India is set up pretty well for crypto use.

On top of that, the Indian government seems to be getting more into crypto too, says Kashyap. The Financial Intelligence Unit of India gave the green light to big crypto platforms like Binance and KuCoin in May.

However, Sumit Gupta, the co-founder of Indian exchange CoinDCX, believes that India’s crypto ecosystem hasn’t yet reached its full potential. The crypto scene in India is resilient and even though the country is one of the global leaders in crypto use, he suggests that a clear regulatory framework that sorts out the current tax situation is needed.

Balaji Srihari, the business head at CoinSwitch agrees, saying that more flexible tax policies would greatly boost traders’ engagement with the market in India.