The Indian government, known for its stringent stance against cryptocurrencies, is potentially revising its regulatory approach in response to growing global adoption. Ajay Seth, India's economic affairs secretary, remarked that digital assets transcend borders, indicating the country's desire to stay relevant in the evolving digital asset landscape. This reconsideration of policy follows a recent move to tax previously undisclosed crypto gains under India's Income Tax Act. Current regulations impose a uniform tax rate on digital assets, providing no differentiation between short-term and long-term investments. Legal expert Amit Kumar Gupta highlighted that the government's perception of cryptocurrencies is overwhelmingly negative, associating them with money laundering and terror funding. However, there are indications of an evolving narrative, particularly as India explores central bank digital currency (CBDC) initiatives. Former RBI governor Shaktikanta Das has described CBDCs as the future of currency, enhancing the possibility that India might leverage a more forward-looking approach to digital assets and crypto regulation in light of international developments.

Source 🔗