Why India’s Crypto Scene is Like a Hitchhiker’s Guide Through a Tax Jungle

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In the whimsical land of India, where the currency flows like the Ganges and the regulations are as clear as murky water, our brave crypto users are grappling with high taxes and the kind of bureaucracy that could make a Vogon weep. Enter stage left, the illustrious former MP Ritesh Panday—who, armed with nothing but a sense of purpose and possibly too much caffeine—has decided to champion the beleaguered crypto community. His bold proclamation? Slash that 30% tax, cut out the 1% TDS, and for the love of all things digital, let’s have some transparent rules! 🚀

Over-Regulation Could Kill India’s Web3 Potential

Now, if you’ve ever tried buying an NFT, you’ll know it’s a series of events that could rival a less-successful stage play. First, you buy some crypto. Next, you transfer said crypto to your wallet, feeling all important, and then you make your purchase. However, thanks to the current regulations, a delightful 1% TDS pops up at every turn like a party crasher who didn’t get the memo about appropriate behavior. Panday warns us that this labyrinth of red tape is less ‘innovative playground’ and more ‘innovation choking hazard’. 🏗️

Former MP Ritesh Pandey raises his voice again for Indian crypto users:

• Cut 30% crypto tax
• Remove 1% TDS
• Bring clear, fair regulations

He describes crypto as a “yuva asset class”—because why should only ancient artifacts have class? 💃

With a multitude of startups and unicorns prancing about, India is practically a Web 3.0 wonderland! But lo and behold, regulations are like overly protective parents—choking the life out of potential adventures before they can even begin.

India’s Crypto Tax Burden Keeps Growing

If you’ve ever wondered about the excitement of paying taxes, let me introduce you to India’s delightful crypto scenario! While no law regulates crypto (which is a bit like having a trampoline in a room full of glass windows), strict taxes are already bustling around. A nice 30% tax greets any profits, and let’s not forget our oversized friend, the 1% TDS, lurking ominously over every single sell transaction, regardless of how much you’re actually trading. 🎩

As of July 7, 2025, it seems the cosmic forces of the universe decided to crank up the complications. Bybit will kindly introduce an 18% GST on basically everything crypto-related—trading, staking, withdrawals, basically anything short of a small miracle. 🤑

Heavy Taxes Driving $42B in Volume Offshore

Meanwhile, our good friend Sumit Gupta, the CEO of CoinDCX, has pointed out that the 1% TDS rule is like a bad sequel—doing more harm than good! Over five million Indian users have scuttled off to offshore platforms (imagine a digital pirate ship), dragging $42 billion in trading volume along with them since July 2022. The government, in its infinite wisdom, has lost an estimated $4.2 billion in potential revenue, while proudly collecting a mere $31 million through TDS. Cheers to inefficiency! 🥳

As Indians trade an absolute mind-boggling Rs 2.63 lakh crore on foreign platforms in just ten months, they seem to be artfully dodging around Rs 2,600 crore in taxes. If this trend continues (spoiler alert: it probably will), we could be waving goodbye to losses crossing the Rs 17,000 crore mark faster than you can say ‘Where’s my wallet?’

Lack of Regulation, Weak Tracking, and Rising Security Concerns

Ah, but the adventure doesn’t end here! Crypto remains unregulated in the joyous land of chaos, where platforms are supposed to register under anti-money laundering laws, but, much like socks through a laundry portal, many don’t comply. Major security breaches—including a popular exchange taking a nosedive—have raised alarming concerns about the safety of user assets. Talk about a risky circus act! 🎪

Did I mention that India lacks a real-time system to track whether people are, well, being honest about reporting their crypto riches? Since the tax rules kicked in, the government has collected over Rs 700 crore, but it seems they’ve also lost track of how much money may be off sneaking around due to under-reporting. 📉

Our valiant tax officers are undergoing training in blockchain and digital forensics—because who doesn’t want to play detective? But let’s be honest; whether this training will suffice in the super-fast world of cryptocurrency is a whole different debate!

COINS Act 2025: A Bold Blueprint

Fear not, for efforts are underway! Hashed Emergent has gallantly introduced the COINS Act 2025, a rather ambitious proposal of rights-based crypto legislation. It calls for self-custody rights because really, who wants a government babysitting their digital assets? It aims for tax reforms and a dedicated regulator—although it’s still as much a law as a cat is a dog. But could this be our beacon of hope to elevate India to the Web3 throne? The universe is watching! 🌌

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2025-07-22 15:28